Long on Canadian. Demand zone failed. Risk management
The trade setup.
Anytime I enter a trade, key word is trade management. How much am I willing to risk is my first calculation. comparing to my Reward, yield a risk management. In this case I was willing to risk 8 to 10 points for a reward of 20-30 points. a ratio of 2.5 is ok, but I would like to see a Risk Reward of 3-5
Why I took the Trade. The odd Enchanters
- the Stock is Strong one, making a Higher High (HH) in June-2021
- the correction drops into the DZ that is HL of the Week uptrend
- Imbalanced selling into a DZ; nice
Things I can improve on
- time my Enter of the LNG to be tighter (less risk)
Things I learned.
- The Long-term (M) was not with me, meaning technically the monthly chart(M) was in a downtrend. this actually violated my trade plan but I took the trade anyways
- Before the correction. Price did make a HH on the (W) but not a Higher Close (Red Circle);indicating slowing buying momentum
Anytime I enter a trade, key word is trade management. How much am I willing to risk is my first calculation. comparing to my Reward, yield a risk management. In this case I was willing to risk 8 to 10 points for a reward of 20-30 points. a ratio of 2.5 is ok, but I would like to see a Risk Reward of 3-5
Why I took the Trade. The odd Enchanters
- the Stock is Strong one, making a Higher High (HH) in June-2021
- the correction drops into the DZ that is HL of the Week uptrend
- Imbalanced selling into a DZ; nice
Things I can improve on
- time my Enter of the LNG to be tighter (less risk)
Things I learned.
- The Long-term (M) was not with me, meaning technically the monthly chart(M) was in a downtrend. this actually violated my trade plan but I took the trade anyways
- Before the correction. Price did make a HH on the (W) but not a Higher Close (Red Circle);indicating slowing buying momentum
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.