[Chimei Flow FX] As volatility rose, I entered trades repeatedly. [Live trade commentary on GBPUSD & EURUSD and real-time EURUSD environment awareness]
Since I had been posting mostly videos lately,
this time I plan to write a blog with images and text for a change!
There was a large drop in the pound-dollar,
so I entered a short position.
First, I confirmed a one-hour timeframe support line break.
Next,
I confirmed that the daily timeframe support line had also been broken.
Because both of these swing lows were broken in one move,
I predicted that the downtrend would continue after this.
And,
I dropped down to the 15-minute chart and
entered the first short trade when the final selling signal lit up.
By the way, this first entry was
a test sale,
and not a point with a very high win rate, but
I didn’t want to miss the momentum of the downtrend, so
I entered with half the lot size (100,000 units).
After a small decline, there was a pullback and a rise,
and the price was capped at the previously drawn one-hour support line, then it fell again,
and it broke the rising low line drawn on the 5-minute chart,
and the final selling signal lit up on the 5-minute chart,
so I entered another short trade of 100,000 units.
The second entry point is based on a lot of overlapping reasons,so
it is a point with a very high probability of success.
If you refer to my trades,
please use this second entry as a reference!
This time I placed stop-loss and take-profit orders far away, so
the holding time was about 26 hours.
During that time, there were moments with no unrealized gains,
and at times the position briefly turned into a small unrealized loss, but
I was confident in this pattern, so
I waited patiently until the take-profit level was reached.Although I kept it simple by just setting a limit order and leaving it alone. Haha
Then, it dropped again, and
in Elliott Wave terms,
the third wave occurred properly,
and I was able to take profit.
On the daily chart, it looks like this.
This time, overall I captured 200,000 units for +67.9 pips.
Incidentally, around the same time the euro/dollar also broke down similarly,
I entered a short there as well,
but I ended up over-adding, making things messy,
and I couldn’t provide a proper trade analysis as a result (;^_^A
I currently hold three positions,
each with different entry points, so take-profit points differ as well.
Even so, all three positions have been closed for profit. Haha
By the way,
the topmost USDCHF position has been carried since a week ago
and was able to take profit along with the euro/dollar decline. Haha
Basically, I don’t usually adjust the initial orders once placed, so
I wait until they hit stop-loss or take-profit.
Holding for a week felt quite long, though. Haha
Putting that aside,
the euro/dollar I’m currently holding
I plan to wait patiently until it reaches take-profit levels.
Since the half of the three positions I already entered have taken profit,
even if the price moves against me, if my overall P/L remains break-even,
I can end without any damage..
The reason I am able to keep these positions is that
it would be easier to see why by looking at this euro/dollar daily chart image.
Since a strong level on the daily chart has been broken,
I believe there is ample basis for the downtrend.
Looking at the daily highs,
it also resembles a head-and-shoulders pattern.
It isn’t a perfectly clean shape, so
whether a downtrend will start from the head-and-shoulders top is unclear.
However,
recently volatility had been low,
and now volatility has suddenly risen,
so I feel a more conducive trading environment is coming.
Volatility also has waves, and after a period of low volatility,
a shift to high volatility is likely.
When volatility is high,
technical analysis tends to work better, and
the potential profit range widens ♪
Traders’ profits are governed by market volatility
and it isn’t an exaggeration to say so.
So,
before December’s year-end market increases volatility too much
it would be good to take profits where possible!
That said,
this time I shared my trades with images and text after a long while.
I’d be happy if you found it at least a little helpful (#^.^#)
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