UJ Sell Off Confluence
Updated
Textbook bearish bat
Bearish Engulfing on:
- Fib Level
- Trendline Rejection
- EMA/SMA Cross on 30m
Bearish Engulfing on:
- Fib Level
- Trendline Rejection
- EMA/SMA Cross on 30m
Trade active
This high quality setup + patient entry point = Small SL of only 9-10 pips. Risk management rules call for a close of half of position at 1:1 risk to reward ratio, in this case = 9-10 pips. On trades with these tight stop losses, we STRONGLY RECOMMEND following responsible risk management which will allow you to take advantage of a risk free trade opportunity.
Trade closed: stop reached
For more conservative traders, the SL can be moved to the break even point, or entry point so that no loss is incurred in case of sudden price action against the trade. In this case, the price was strongly rejected off the (white) EMA200 which is also a 38% Fib level on the smaller 15m timeframe. This EMA200 on the 15 minute chart is used by many to take partial profit and setting an alert for this event can remind you to check price action and manage the trade accordingly.
Half of this position closed in profit, second half closed at break even point.
The main focus in becoming profitable is to control what can be controlled, and protect the account from what can't.
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