For this trade, the big trend in 4-hour time frame having a down trend. So, I’m focus on the downtrend to get in.
4-hour Time Frame Price Analysis
This trade I trade in the 1-hour time frame. I have drawn a wrong support downtrend line and didn’t revise the changing of the market of the price and this cause me to get in the trade.
1-hour Time Frame Price Analysis
when I get in the trade, I followed my rule which EMA is “open” and Stochastic also “open”.
But at here the stochastic line is not that pretty because it has been at the level below of 20 for a period and the gradient is almost zero.
MACD also have a “open” and the direction of MACD seems to reverse at that time to form a same level of support point as the previous retrenchment. So, I thought it is a good time to get in.
last, the accelerator has a two-continuous red bar, it is favorable to enter the market according to my rules with I didn’t realize the support of the price had changed. The accelerator for the 4-hour also positive to this trade.
so that’s mean
this is a learning trade – lose
as my three words rule – P.C.S.
Pattern: The support of the price had changed but I didn’t keep both eyes on it, my mistake.
Market Condition: The market is in a Normal Bear and I get in a bit late after a minor retrenchment.
Strategy: I use normal trending strategy with all of the indicator and oscillator agree with the trade with the Stochastic not that “pretty”.
The trade is then follow the flow to go down. But after it reached the support line, the price bounce back and I sold it before it hit my stop-loss because I noticed it had changed in the trend and high possibility that it will not go to my favorable direction. (And my decision was right to stop my loss).
Market is always changing, you need to keep both eyes on the trend lines you drawn, and pattern changed. always check the pattern changes or trend changes every time check on the market.