GER40 Trade LogYour GER40 trade setup on the 1-hour timeframe demonstrates a robust approach when aligning technical indicators with your FVG strategy. Here's a detailed breakdown:
1. Risk-reward ratio (RRR):
The setup has a favorable 1:2 RRR, meaning for every 1% risk taken on the trade, you aim for a 2% return. Points-wise, the stop-loss is placed at 75 points, while the take-profit target is at 150 points.
2. Risk management:
You are risking 1% of your account per trade, which ensures proper risk control while aiming for a 2% profit, aligning well with professional trading standards.
3. Confluence with Ichimoku lines:
The inclusion of Ichimoku lines as part of the analysis adds an extra layer of confirmation. These lines can highlight areas of support and resistance, momentum, and trend direction. Their alignment with the FVG and trend suggests higher probability for success.
4. Strong trend:
Trading in the direction of a strong prevailing trend increases the likelihood of reaching the profit target. This confluence supports the trade thesis, minimizing the risk of adverse market moves.
5. Execution:
The entry point within the FVG, supported by Ichimoku signals, should ideally occur when price demonstrates confirmation, such as bullish candlestick patterns or other reliable triggers.
This setup combines high-probability technical elements with sound risk management, making it a structured and disciplined trade plan. Monitoring market conditions and economic events will be essential to manage any unexpected volatility.
