GER 40 Trade Log GER40 1H Long Setup: Entering at 0.5 FVG Level
I'm eyeing a long position on the GER40 (DAX) based on the 1-hour timeframe. Here's the breakdown of my trade setup:
🔹 Entry Point:
- Entering at the 0.5 level of the hourly Fair Value Gap (FVG).
🔹 Risk Management:
- Risk: 1% of the trading account.
- Risk-Reward Ratio (RRR): 1:2.
- Stop Loss (SL): Placed below the 1H Kijun-sen line to account for potential volatility.
🔹 Trade Idea:
- Expecting a retracement to the FVG before resuming the upward trend.
- Aware that price action might slice through our SL, but willing to see how it unfolds.
📊 Technical Analysis:
- Ichimoku Cloud: The price is above the cloud, indicating a bullish trend. Placing the SL below the 1H Kijun-sen provides a safety net against sudden dips.
- FVG Levels: Fair Value Gaps often act as magnets for price retracements. The 0.5 level is a strategic entry point to capitalize on the potential bounce.
🌐 Macro Factors Supporting the Trade:
- Economic Resilience: Recent data shows that the German economy is demonstrating resilience amid global uncertainties, boosting investor confidence.
- ECB Monetary Policy: The European Central Bank's accommodative stance continues to support liquidity in the markets, which is positive for equities.
- Political Developments: Speculation around leadership changes, such as discussions about President Macron's position, might lead to increased investor optimism in European markets.
- Global Market Sentiment: A general shift towards risk-on sentiment globally can propel the GER40 higher.
📝 Note:
Trading always carries risk. While the setup aligns with both technical and macroeconomic factors, unforeseen events can impact the outcome. Stay vigilant and adjust your strategy as needed.
Let's monitor this trade and see how it plays out. Feel free to share your thoughts or any insights you might have!
