$100k Challenge - EURNZD Short - E33 T1
Hey all!
After some weeks of not that many set-ups to trade, we have a new position opened! Personally, this trade has taught me some lessons about questioning your charts and understanding that trading in general can be thought of as a mix between alchemy and science, at least in my opinion.
Anyways, as always, find the notes below from the trading journal, enjoy!
Overall, for the last several years, EURNZD has behaved more or less on a large range pattern with some exceptions on the last few major world events (yep, the pandemic and the inflation crisis). Since I consider the markets are slowly returning to "normal business", I find this a compelling trade to take.
We see that the market has been approaching a major D1 resistance area (the one shown on the chart is limited to the recent market activity, it goes back many years, mostly as a resistance), and showing some clear signs of a break of structure in recent weeks.
I had a slightly different chart set-up that, on every daily check routine, I kept thinking something was off, I decided today to redraw the trade levels and the trading opportunity became clearer to me, as the market broke the ascending channel and retested the break, I saw a potential short opportunity in the making.
I consider this a slightly special case as we do have a recent low relatively close to the entry price, so in terms of trade management, I'll consider a move-to-break-even play depending on price action. The rest is a traditional approach, SL about 0.5 ATR above the last high (I consider the entry price is far enough to shorten a bit the 1 ATR regular distance to trade on a better risk-reward), first profit target to the nearest relevant price area, and second profit target open to see how much we can squeeze.
As a side note, while I cannot fully discard that I made the chart make sense to take the trade on the redraw I previously mentioned, doing some self-reflection, I consider regardless of the trade execution, the chart makes way more sense to me after it, so I would consider a "wishful thinking" as a non-applicable in this particular trade.
After some weeks of not that many set-ups to trade, we have a new position opened! Personally, this trade has taught me some lessons about questioning your charts and understanding that trading in general can be thought of as a mix between alchemy and science, at least in my opinion.
Anyways, as always, find the notes below from the trading journal, enjoy!
Overall, for the last several years, EURNZD has behaved more or less on a large range pattern with some exceptions on the last few major world events (yep, the pandemic and the inflation crisis). Since I consider the markets are slowly returning to "normal business", I find this a compelling trade to take.
We see that the market has been approaching a major D1 resistance area (the one shown on the chart is limited to the recent market activity, it goes back many years, mostly as a resistance), and showing some clear signs of a break of structure in recent weeks.
I had a slightly different chart set-up that, on every daily check routine, I kept thinking something was off, I decided today to redraw the trade levels and the trading opportunity became clearer to me, as the market broke the ascending channel and retested the break, I saw a potential short opportunity in the making.
I consider this a slightly special case as we do have a recent low relatively close to the entry price, so in terms of trade management, I'll consider a move-to-break-even play depending on price action. The rest is a traditional approach, SL about 0.5 ATR above the last high (I consider the entry price is far enough to shorten a bit the 1 ATR regular distance to trade on a better risk-reward), first profit target to the nearest relevant price area, and second profit target open to see how much we can squeeze.
As a side note, while I cannot fully discard that I made the chart make sense to take the trade on the redraw I previously mentioned, doing some self-reflection, I consider regardless of the trade execution, the chart makes way more sense to me after it, so I would consider a "wishful thinking" as a non-applicable in this particular trade.
