Although we have a weak consolidation zone marked in triangle has given us a clue thats the zone where the demand is, where we would meet the buyers again possibly. The key thing to understand the zone is that, count the bars or lets say the time it spend around the zone, the less the time it spends the more potential it becomes. To confirm the demand trading, I have got the cypher pattern which completed pretty much accurately in the zone. I would not mind buying at CMP, but the 38.2% TP is not looking good, maybe we could use a more better exit strategy, Maybe the 2nd target.
Some Important rules:
1) How big of a position do I want to trade? How much capital am I going to risk? Am I limiting my risk to 1% or 2% of my trading capital?
2) What is my risk of ruin based on my capital at risk?
3) Why am I entering the trade here? What is the trigger to trade?
4) How will I exit with a profit? A price target or trailing stop?
5) At what price will I know that I was wrong? Where is my stop loss based on the position size?
6) Will I be able to admit I was wrong and exit the trade if my stop is hit, or will my ego make me hold and hope?
7) Is the risk small enough that I can emotionally handle the loss without blaming the market?
8) Can I really risk this money or do I need it for upcoming bills? Trade with risk capital not living expenses.
9) Am I committed to staying disciplined and following my trading plan on the trade?
RISK DISCLAIMER:
RISKS ASSOCIATED WITH FOREX TRADING
Trading foreign currencies can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose.
Some Important rules:
1) How big of a position do I want to trade? How much capital am I going to risk? Am I limiting my risk to 1% or 2% of my trading capital?
2) What is my risk of ruin based on my capital at risk?
3) Why am I entering the trade here? What is the trigger to trade?
4) How will I exit with a profit? A price target or trailing stop?
5) At what price will I know that I was wrong? Where is my stop loss based on the position size?
6) Will I be able to admit I was wrong and exit the trade if my stop is hit, or will my ego make me hold and hope?
7) Is the risk small enough that I can emotionally handle the loss without blaming the market?
8) Can I really risk this money or do I need it for upcoming bills? Trade with risk capital not living expenses.
9) Am I committed to staying disciplined and following my trading plan on the trade?
RISK DISCLAIMER:
RISKS ASSOCIATED WITH FOREX TRADING
Trading foreign currencies can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose.
Trade closed: target reached