GER40 Trade LogTrade 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.