This trade breakdown is by Connor Ballinger, a member of the Duomo Team supporting our Premium Members. This trade was covered in a live stream inside our Members' App.
This was an opportunity for a GPJPY short trade 15 June 2020.
The analysis shows us that we are clearly operating in a bearish market and there is a possibility that the next leg down has already begun.
Here we see that the structure is opposing that of the long-term but we are currently in an area that may be interesting. The levels used here are not the strongest and should be noted throughout the remainder of the trade analysis.
Upon review, there may have been another variation to this trend line that would have redefined the basis of the trade if I would have decided to be the correct trend line at the time of the analysis. However, we will continue assuming that this is the correct variation as I did in the live situation.
Entry Criteria & Risk Management
Here we see the criteria used for the trade entry, stop-loss and TMP selection. Initial TMP gives the trade a risk:reward ratio of 1:2.28. However, if we create a short term lower low following this lower high then the possibility of a larger potential move increases.
Note: At the time of entry the trend line in this screenshot is unconfirmed.
Trade Management & Exit
Until this point, most of the analysis has been pretty weak, however, I still believed in the potential providing that trade management is as close to perfect as possible. Should we close at any point as a higher high I would exit with a small loss.
Here you can see the decision of scaling out 50% at TMP and the remainder at near the initial entry price.