Instrument: EURUSD
Trade Type: Short
Timeframe: [4HR]
Entry Price: [1.07655]
Stop Loss (SL): [1.07901]
Take Profit (TP): [N/A]
Risk-Reward Ratio: N/A
Outcome: Non-Profitable
Entry/Analysis:
Today's trading approach involved patiently monitoring EUR/USD for a retracement to a key supply zone, which was initially a demand area until breached yesterday. Recognizing this price level as a pivotal point, I anticipated that a rejection here could indicate renewed selling pressure. I waited for a clear signal—a rejection candle—confirming bearish sentiment at this supply level, aligning precisely with my established entry criteria. The trade setup was based on my structured strategy focused on high-probability reversal points at supply and demand zones. Confident in my analysis, I initiated the short trade as soon as the price action fulfilled my pre-set conditions.
Exit/Outcome:
Despite a well-planned entry, the trade ultimately resulted in a loss as EUR/USD breached the supply zone, reversing the anticipated move. This shift may be attributed to a surprising market sentiment shift impacting the U.S. dollar. After a strong performance yesterday, the dollar faced renewed pressure today, largely driven by market reassessments of the Federal Reserve’s likely rate path. Additionally, positive global developments contributed to a reduced risk-off appeal for the dollar, while improved economic signals from key international markets increased investor confidence in riskier assets. These factors led to an upward push in EUR/USD, contrary to my short position’s expectations.
Psychology:
Despite the outcome, I maintained composure and adhered strictly to my trading plan, demonstrating patience and discipline. I executed this trade based on a sound setup that met my strategy's requirements, underscoring my commitment to following my system rather than reacting impulsively. This experience highlighted the importance of managing losses gracefully and accepting market dynamics beyond personal control. By keeping a measured mindset, I preserved my focus for upcoming opportunities, recognizing that adherence to strategy outweighs individual trade outcomes.
Trade Score:
Execution: 3/3
Psychology: 3/3
Overall Trade: 6/6
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