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A Week In Review: July 16th – July 20th

In this article, you’ll understand why we took our trades for the week of July 16th. You'll also see how we analyse our trades before, during and after.

Trade 1: EURUSD

Selling opportunity due to a bearish Cypher pattern. I placed a sell limit at 1.1741  for a more conservative entry, instead of the usual entry at D completion. This is due to my understanding of market psychology, but I digress. Stop loss goes above X while my initial target was 50 pips, giving me a decent risk/reward of 2.

Months and months of studying market psychology have not failed me as my sell limit was triggered to the pip. A perfect entry. What more could I possibly ask for? Having had a perfect entry, I extended my target all the way back down to the C leg. A grand total of 120 pips and 4.8R was taken from this trade.

I’ve always had a bad habit of losing my first trade of the week but this…..was a pleasant surprise.

Trade 2: NZDUSD

I identified a selling opportunity due to a potential zone of reversal (orange box), in confluence with the top of a bearish channel. The plan was to wait for price to go past my entry before setting a sell stop at 0.67877. My stop loss went above the zone and target was the bottom of the bearish channel, giving me good risk/reward of 2.8.

Price did trigger my sell stop and was ranging around my entry before I was eventually stopped out in one candle. No better way to know that you’re wrong. I was stopped out for a 25 pip and 1R loss.

In hindsight, if I had actually used the zone of reversal as a turning point, I would not have taken part in this trade, therefore saving me a loss.

Trade 3: GBPUSD

This was a buying opportunity due to a demand zone (green box). The plan was to wait for price enter the zone before setting a buy stop at 1.32518, with my stop loss below the demand zone and my target being 65 pips. This gave me a decent risk/reward of 2.5.

The setup was triggered but price dropped quickly, stopping me out for a 30 pip and 1R loss. In hindsight, in the first image, price was actually at resistance and could not make a higher high, signifying the end of its short uptrend.

Trade 4: USDCHF

Price was at previous resistance, which could potentially turn to support, giving me a buying opportunity. A placed a buy stop at 0.99908 with a 25 pip stop loss and I was targeting 60 pips. This gave me a decent risk/reward of 2.4.

Price went down a lot more before reversing and triggering my buy stop. I was about 15 pips away from TP before priced retraced towards my entry, and this was when I moved my stop loss to breakeven. Thereafter, my stop loss was trailed based on price action.

I was unfortunately stopped out for a profit 35 pips and 1.4R. In hindsight, if I had a more conservative entry, my target would have been hit easily. A more conservative entry would have been near where price reversed as there was some support in that area.

total pips for this week
total pips for july
1 %
total ROI for this week
1 %
total ROI for july

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