Trade Setup (30/10/2024) - GER40 Short on 1H FVG
1. Market context: Anticipating a downward move in GER40 driven by poor earnings reports, which could increase bearish momentum.
2. Setup: Short position within the 1-hour Fair Value Gap (FVG) acting as a supply zone.
3. Entry strategy:
- Target: 1:2 RRR.
- Risk: 1% of account.
- Entry confirmation: Wait for price to retrace into the 1H FVG and show signs of rejection (e.g., bearish engulfing candle or other reversal pattern) before entering short.
4. Stop-loss and take-profit:
- Place stop-loss above the FVG to protect against a reversal.
- Set take-profit at twice the distance of the stop-loss for a 1:2 RRR.
5. Additional considerations:
- Be mindful of further earnings announcements that could influence volatility.
- Monitor European market sentiment, as additional poor earnings could support the short bias.
This setup leverages the 1H FVG as an entry zone, with bad earnings acting as a catalyst for the anticipated move downward.
1. Market context: Anticipating a downward move in GER40 driven by poor earnings reports, which could increase bearish momentum.
2. Setup: Short position within the 1-hour Fair Value Gap (FVG) acting as a supply zone.
3. Entry strategy:
- Target: 1:2 RRR.
- Risk: 1% of account.
- Entry confirmation: Wait for price to retrace into the 1H FVG and show signs of rejection (e.g., bearish engulfing candle or other reversal pattern) before entering short.
4. Stop-loss and take-profit:
- Place stop-loss above the FVG to protect against a reversal.
- Set take-profit at twice the distance of the stop-loss for a 1:2 RRR.
5. Additional considerations:
- Be mindful of further earnings announcements that could influence volatility.
- Monitor European market sentiment, as additional poor earnings could support the short bias.
This setup leverages the 1H FVG as an entry zone, with bad earnings acting as a catalyst for the anticipated move downward.
Note
SL SIZE UPDATE
Note
A tighter SL makes sense here because our TP has a higher chance of getting hit.Note
Price went without us but can still be traded in the future.
Fondera | Data-Driven Trading Excellence
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💰Watch me trade live: youtube.com/@Fonderaio
🚀 Discover actionable strategies: x.com/fonderaio
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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.
Fondera | Data-Driven Trading Excellence
💰Watch me trade live: youtube.com/@Fonderaio
🚀 Discover actionable strategies: x.com/fonderaio
🌐 Explore my journey: fondera.io
💰Watch me trade live: youtube.com/@Fonderaio
🚀 Discover actionable strategies: x.com/fonderaio
🌐 Explore my journey: fondera.io
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.