EUR/USD Entry Criteria
1. The risk was assumed: I am comfortable by losing this % (pips, $, etc), and this "loss" will cause no harm to the account.
SL at 1.2790 just above previous top was ideal but in this case where a Round Number was too close, it can be use to defend the entry, therefore instead of 1.2790 it was place at 1.2820 above RN
2. There is enough confluence: a rejection may be expected since it is an easy level to identify by other market participants
a. 23% Fib is a strong continuation level, in this case it is perfect level for a downtrend continuation
b. Clear previous Rejection areas (S&R)
c. Downtrend Symmetry
3. Entry is around average candle move
4. Price wasn’t in a consolidation period just below entry
5. Price isn’t coming from a retracement made just before entry
6. RRR is above 1:1, in this case 4.3:1
This isn't a check list for all setups, it is set of parameters that comes together for this particular case. I will try to elaborate for each new chart. Please let me know if there are additional questions. After awhile, all of the above will pop up in your head without even draw a single line, just with a naked chart.
1. The risk was assumed: I am comfortable by losing this % (pips, $, etc), and this "loss" will cause no harm to the account.
SL at 1.2790 just above previous top was ideal but in this case where a Round Number was too close, it can be use to defend the entry, therefore instead of 1.2790 it was place at 1.2820 above RN
2. There is enough confluence: a rejection may be expected since it is an easy level to identify by other market participants
a. 23% Fib is a strong continuation level, in this case it is perfect level for a downtrend continuation
b. Clear previous Rejection areas (S&R)
c. Downtrend Symmetry
3. Entry is around average candle move
4. Price wasn’t in a consolidation period just below entry
5. Price isn’t coming from a retracement made just before entry
6. RRR is above 1:1, in this case 4.3:1
This isn't a check list for all setups, it is set of parameters that comes together for this particular case. I will try to elaborate for each new chart. Please let me know if there are additional questions. After awhile, all of the above will pop up in your head without even draw a single line, just with a naked chart.
