USDJPY
- Currency Pair: USDJPY
- Position: sell
- Lot Size: 0.02
- Risk/Reward Ratio: 1.0
- Profit/Loss: -$6.40
Entry Rationale
- The outlook was bearish on both the 4-hour and 1-hour charts.
- A downtrend was also forming on the 5-minute chart.
Entry Point, TP and SL Level
4h
1h
5m
A downtrend was forming on the 4-hour and 1-hour charts, and a downtrend had also developed on the 5-minute chart, so I entered a pullback short.
The planned take-profit was set just before the swing low on the daily chart.
The stop-loss was placed to trigger if the price closed above the 1-hour swing high with a candlestick body.
In the end, the trade hit the stop-loss.
Trade Review
This time, I entered a short position before completing my full market analysis.
While the short entry itself wasn’t necessarily bad, since the entry was based on the 5-minute chart, I should have also defined the stop-loss using that timeframe.
Initially, I planned to cut the loss if the 5-minute downtrend broke, but after looking at the 1-hour chart and seeing the possibility of selling pressure returning, I moved the stop-loss level.
I was aware that a pullback might occur, but I rushed the trade out of fear of missing an opportunity.
As a result, the risk-to-reward ratio ended up being worse than ideal.
Although I did stick to my stop-loss rules, overall, it was not a well-executed trade.
