USDJPY
- Currency Pair: USDJPY
- Position: sell
- Lot Size: 0.02
- Risk/Reward Ratio: 4.0
- Profit/Loss: -$1.29
Entry Rationale
- The 4-hour and 1-hour charts are both showing a bearish bias.
- The price has risen to near the upper boundary of the 1-hour chart’s range.
Explained in detail in the market analysis article below↓
Entry Point, TP and SL Level
4h
1h
5m
Entered a short position as price reached the 1-hour chart’s swing-high line.
Planned to take profit just before the most recent 1-hour low, and set a stop loss to trigger if price closed above the last 1-hour swing high.
The 1-hour swing high was decisively broken, so the stop loss was hit.
Trade Review
This trade ended up being quite sloppy.
The 4-hour and 1-hour charts were both showing a downward bias, but the recent price action was hard to read, and as the price approached the upper limit of the 1-hour range, the upward momentum was strong.
When I entered the trade, the price had almost broken above the 1-hour swing high, so it was a market I should have avoided.
I entered about 10 minutes before the 1-hour candle closed, so I should have at least waited for the candle to close before entering.
My planned stop loss was when the price clearly broke above the 1-hour swing high, but I kept hoping it would return to my entry price, so I couldn’t cut my losses immediately even after the break was confirmed.
The short strategy itself wasn’t bad, but failing to follow the rules I set before entering was the worst part.
