This is an interesting trade!
Set up is: Pending Long@1.2775 with SL=20pips; TP1=1.2820(+45pips);TP2=1.2848
SL hit at 1.2755. A short Price Action formed after candle closed at 6pm. Entered Short@1.2759, SL=20pips; aiming TP2@1.2670(+89pips)…TP1 done!
TP2 hit +89pips…Net profit=89-20=+69pips!
Setting up can be analyzed through support level, resistance level, trend line, trending signals can be higher highs, higher lows for uptrend, lower highs, lower lows for down trend. Double tops for starting of down trend, double bottoms for up trend, etc.
From this example, we can see that money management is so important. If we didn’t set the stop loss, we will lose more.
Emotion is so important, some people will stop trading when their first stop loss is triggered. Traders must be flexible, when they see the price action is against the expectation, we should adjust our trading immediately to follow the trend.