Trade Date: June 18th 2020
Currency Pair: USDCAD
Trade Direction: Short
Entry Setup: High test candlestick formation
Entry Timeframe: 5 Minutes
Daily Trend: Bearish
Trade outcome: Loss
Comments : Following the daily down trend, break of structure at 1.3900 and further added confluence of bad employment data from the US and positive NFP results from CAD my overall bias on this pair was Bearish.
One thing i didn’t consider getting into this trade intra day was that yesterdays price closed high than the Monday and price was not close to a daily resistance level. Price was stuck between two minor zones. Worse place to enter a trade. When I trade intra day as-in 1H or 5 minute, I find the probability of a trade going your way increases significantly when take trades at a daily zone.
However looking below at the 5minute chart you will see that I started the day with drawing all of the recent support and resistance zones. I do this by looking at where yesterdays close ,open, highs and lows are. and then move to the 1H and 4H timeframes to identify any other significant zones
Another mistake I did here was that I didn’t pay enough attention to the 1H resistance zone rite above where I entered. I entered the trade when price approached a 5 minute resistance zone. However since price was very close to a higher time frame i.e 1H resistance zone, naturally price was attracted to zone since remember! all of the big players look at higher timeframes. Below is the the chart of what transpired at the end