Let’s review a trade and delve into my thought process behind it.
Image 1:
In this image, I have outlined my H12 range after the market structure break. I took the low that broke the market structure and the high that closed above my previous H12 range, as indicated by the green line marked MSB
Image 2:
Here, I have displayed the H1 chart within my H12 range, which is represented on the left side by the Fibonacci tool. Observing the H1 chart, there is a clear deviation and swing failure pattern at the high, followed by a close below it. This suggests to me that we might begin trading towards the lower part of the range.
Image 3:
This image presents my short setup model. I look for an H1 swing failure pattern, followed by a market structure break from the low that formed the swing failure pattern. Once these conditions were met, I initiated my short trade and patiently awaited my entry.
Image 4:
In this image, you can see that the price came very close to my target, indicated by the wick on the left-hand side. However, it fell slightly short of that level. At that point, I decided to take some profit off the trade and adjusted my stop loss to break even, just in case we experienced a reversal and a potential upward movement. Unfortunately, this occurred due to a high-impact news release in the USA.
To summarize, by analyzing multiple timeframes and layering my trade idea from the H12 into the H1, I was able to execute a trade from the highs to the lows, while trimming profits along the way to secure some profit in case of a reversal.
Let’s review a trade and delve into my thought process behind it.
Image 1:
In this image, I have outlined my H12 range after the market structure break. I took the low that broke the market structure and the high that closed above my previous H12 range, as indicated by the green line marked MSB
Image 2:
Here, I have displayed the H1 chart within my H12 range, which is represented on the left side by the Fibonacci tool. Observing the H1 chart, there is a clear deviation and swing failure pattern at the high, followed by a close below it. This suggests to me that we might begin trading towards the lower part of the range.
Image 3:
This image presents my short setup model. I look for an H1 swing failure pattern, followed by a market structure break from the low that formed the swing failure pattern. Once these conditions were met, I initiated my short trade and patiently awaited my entry.
Image 4:
In this image, you can see that the price came very close to my target, indicated by the wick on the left-hand side. However, it fell slightly short of that level. At that point, I decided to take some profit off the trade and adjusted my stop loss to break even, just in case we experienced a reversal and a potential upward movement. Unfortunately, this occurred due to a high-impact news release in the USA.
To summarize, by analyzing multiple timeframes and layering my trade idea from the H12 into the H1, I was able to execute a trade from the highs to the lows, while trimming profits along the way to secure some profit in case of a reversal.