Let's look at the overall trend using the hourly, since i trade the 15 min chart..
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| EUR/USD Hourly |
There was ECB rate announcement this week, look at what happen when ECB released its comment, a volatile market, break up fractal then break down fractal then go up, down, up, down like a yoyo.. I tend to stay out and just follow through the next days..
The market react negatively, so the next day, I just look at selling opportunity..
X1, X2, X3 are all valid fractal sell signal.. But i trade this using 15 min chart, can't remember i why use smaller timeframe *lol... Hmm.. it must be because i was waiting until it go near or break the support area..
Let's look at the chart..
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| EUR/USD 15 min |
a nice down trend then it correct before it continue to go down again,
Enter sell break fractal Z1 at 1.4475 and fractal Z2 at 1.4464, price went down to 1.4443 (20-30 pips), then it went up again, close position at 4476 (+1 and -12 pips)...
Didn't take fractal Z3 but definitely take fractal Z4 breakout at 1.4441, since price fail to make a higher high (fail to break up fractal after fractal Z3).. Well i won't know what will happen next, if it continue to go down after it breaks fractal Z3, maybe i'd missed out the down move..
Since it's friday i'm happy to take 80 pips, and i was sleepy too back then, so i just closed it at 1.4361..
If I follow the rule, i'd still be in the market by now with my trailing stop at 1.4361 (same price level *lol)
Overall trade this week made a 69 pips profit..
if I use the hourly, i'd make more pips but with higher consequence (bigger stop loss)..
It's important to know your own characteristics, find a stop loss which you feel is comfortable.. A stop loss that will not hurt you emotionally if it got hit. The key is risk acceptance...
Hmm.. I've noticed that if the ao break its previous peak, it tends to make a big move.. One thing to look at..
