Each week I send my weekly watchlist to my community. This is CADJPY from last week’s watchlist. Although I use multiple entries I will only be showing how new traders on my team following the rules of my book should take a single entry and how the trade should be managed.
Although you would’ve only made 4 pips on this trade there’s knowledge to be had from the management of this trade so let’s go.
Below is the setup that was sent to the team. Please follow along to see how the trade was taken and how it was managed.
As you can see we got the break and sell stop was triggered. Also, the minor bearish trendline has been adjusted because price made a lower low. So first the trendline was drawn on the lower high marked with the grey circle and now there’s a new lower high marked with the lower orange circle.
Price has made a new lower low and a new lower high. Which also make room for us to adjust our stop-loss closer to breakeven. The old stop-loss point is greyed out and the entry is at the green line. The stop-loss is now at -44 pips the first stoploss point was at around -94 pips. Also, notice the circles which marks the correct points for trendlines.
Price made a lower low and a lower high so we adjust our stop-loss which would now be at 4 pips. Also, notice the two previous points we moved our stop-loss from. The entry is exactly under the green bar and the stoploss would be exactly above the hammer candle. For this inner trendline notice there are only two valid points for drawing this trendline marked with the yellow rings.
Although this trade did stop us out at 4 pips it did exactly what we wanted and went down to over 100 pips. But we must not be depressed when this happen. Just a single wick candle (orange circle) stopped us out but don’t sweat it it happens. Just move to the next trade. Also, note that the current minor trendline would need to be adjusted because price made lower lows but I won’t bother to adjust since we should’ve been stopped out. I left it there for you to see clearly why and when we got stopped out.
…. learning fast….
Learned something 🙏🏾