This week hasn’t been the best as we close it with a loss of 2R. No shame in being in the red, because transparency is key when it comes to progress. We start off the week with a losing trade on GBPUSD.
The idea behind the setup was a demand zone (green box) which was in confluence with a bullish trendline. We had our entry at the base of the demand zone with our stop loss below the bullish trendline and our target at previous highs.
Price dropped into our demand zone and we were in profit for a few hours, which was a good sign. However, the bears took control of the market and pushed price down towards our stop loss with 2 big bearish candles.
Ask me if I would have taken this setup any other the day and I would say yes. There isn’t any thing I would change about this setup as I’ve taken several similar ones before which have ended up in profit. Unfortunately, it wasn’t the case for this trade.
The second trade of the week also ended up in a loss. It was a short on USDCAD. The reason behind shorting this pair was because of a supply zone that had formed on the higher timeframe. However, we used the 30 minute chart to pinpoint our entry. We had a sell limit somewhere in the middle of our zone with our stop loss above it and target back and support below.
Price triggered our order before going straight for our stop loss. In hindsight, we should have expected it as price was looking for liquidity at resistance above. Wherever there is resistance/support, there will be liquidity and price will always be attracted to it, no matter how appealing a supply or demand zone may present itself.
We still have an ongoing trade on AUDJPY which has been left over the weekend but we’ll review that once it closes.
In conclusion, this hasn’t been one of our better weeks but we still have our heads up. Looking forward to next week. We go again.
Psst…we’ll even throw in a discount to get you started!