EUR/USD short trade idea has a well-structured plan with a defined entry, stop loss, and take profit targets. Let’s analyze and refine the trade:
Trade Setup Review:
Entry: 1.08776
Stop Loss: 1.09555 (+77.9 pips risk)
Target 1: 1.07677 (+109.9 pips reward)
Target 2: 1.06784 (+199.2 pips reward)
Target 3: 1.06174 (+260.2 pips reward)
Risk-Reward Ratio (RRR): ~1.4 for Target 1, ~2.5 for Target 2, ~3.3 for Target 3
Trading Plan & Adjustments:
1. IF Downtrend is begin
If price breaks below the 1st support area, the short trade will gain strength.
A breakdown of 1.08776 with momentum the short bias.
2. Adjust Stop Loss for Safety:
A stop loss at 1.09555 is decent, but you might tighten it slightly to 1.09450 to minimize risk.
Consider moving SL to breakeven once price reaches Target 1.
3. Entry Timing & Confirmation:
Wait for bearish confirmation (e.g., price rejection from resistance or bearish candlestick formations like engulfing patterns).
Look for a pullback to 1.08776 for the best entry.
4. Manage Trade Dynamically:
If price stalls near Target 1, consider securing partial profits.
Use a trailing stop after Target 2 to capture more downside movement.
Trade Setup Review:
Entry: 1.08776
Stop Loss: 1.09555 (+77.9 pips risk)
Target 1: 1.07677 (+109.9 pips reward)
Target 2: 1.06784 (+199.2 pips reward)
Target 3: 1.06174 (+260.2 pips reward)
Risk-Reward Ratio (RRR): ~1.4 for Target 1, ~2.5 for Target 2, ~3.3 for Target 3
Trading Plan & Adjustments:
1. IF Downtrend is begin
If price breaks below the 1st support area, the short trade will gain strength.
A breakdown of 1.08776 with momentum the short bias.
2. Adjust Stop Loss for Safety:
A stop loss at 1.09555 is decent, but you might tighten it slightly to 1.09450 to minimize risk.
Consider moving SL to breakeven once price reaches Target 1.
3. Entry Timing & Confirmation:
Wait for bearish confirmation (e.g., price rejection from resistance or bearish candlestick formations like engulfing patterns).
Look for a pullback to 1.08776 for the best entry.
4. Manage Trade Dynamically:
If price stalls near Target 1, consider securing partial profits.
Use a trailing stop after Target 2 to capture more downside movement.
Trade closed: stop reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.