It was a nice trade though, no matter the outcome.
I took some time off studying for my tests at school and what is better than taking a break doing trading related stuff? So I took another go at analyzing one your charts, your last one to be precise. It was already a much better trade than the other one, so I can see you learned from what I wrote! But there's still some work to do . Here's what I see when I go over your trade.
I don't know if you knew why you were looking for a call opportunity? Did you know price was moving up because of a target? Or did you only think it would move up because of the upgoing trendline on only the M5 chart? I'm asking this because I used to think price would move up only because a simple small trendline on the M5 timeframe went up. Then when it broke it I was all like: how could it break all of a sudden and then I was just sitting here all clueless. But I missed the bigger picture which I have profound VERY important! Eventually I learned about setting targets by Okane and now I'm doing lots and lots better. Knowing where the market is going before you trade on lower timeframes is in my opinion one of the most important things before you even take a trade. Obviously we can't know for certain price will move that way, but if you do a forecast before you trade the probability is higher and you'll understand trading better. Maybe you did, but I'm asking this because I didn't see it in your explanation with the trade. So therefore I'm giving you this lecture haha.
Here's a picture of my charts at the time:
EURUSD Daily chart
Here on the daily you can see price was moving up at the time (I took this picture just now, so it has already retraced). But at the time it was moving up and making it's way to 1.07753 which I initially set as a target. Mainly because of those two large candle (red circles) which show large volume around this level. Then, if it breaks it might come up to 1.08614, if it doesn't I think it will go down to the trendline again. So, you see? If you know the direction of price you can go to lower timeframes and trade in the direction you determined price is going.
Now, that being said I'll move on to your trade. You lower trendline was good, but your upper trendline (the one you used for the breakout) isn't very relevant if you ask me. It only touches one high and that's it actually. Also it makes like some sort of an ascending triangle and in my opinion those aren't producing the best breakouts. Here's how I would've analyzed your trade:
http://prntscr.com/eyw9gk (don't know what it is, but I can't upload your pictures either, lol)
Anyway, if you look at the chart you see my white line. That's called a microtrend, it's a small downtrend within an uptrend (or it can obviously also be a small uptrend within a downtrend). If a microtrend breaks it's usually a good indication of trend continuation. So, in this case I would've taken the microtrend break instead of your other upgoing trendline break. You did have a support/resistance line nearby, so I would have waited for that line to break as well and then enter. It would be some extra confirmation.
Then, I would have chosen a 15 minute expiry with the target at 1.07566. Why 15 minutes? Well, if you go all the way back to march 29, the last time price was around this level, you see the following:
EURUSD M5 chart
The purple line is the target line (the green line I placed in your chart) and the orange line is the line where the entry would have been. Can you see how all those moves from the one level to the other took around 3 or 4 candles? I learned this from Okane as well when I really struggled with choosing the right expiry times. This has helped me a lot and got my results a lot better as well. Therefore once again, setting targets is very important. On higher timeframes to determine where price is going and shorter timeframes to determine an expiry for your trade. So, on the lower timeframe you don't want your target to be too far away, cause you want a trade between like 5 - 45 maybe 60 minutes right?
Anyway hope this helped you a bit further. Again, happy to help and it's also good for my analysis skills! Happy trading and I'll catch you later!
Last edited by Annovdbos; 04-20-2017 at 10:11 PM.
"You think I ain't worth a dollar, but I feel like a millionaire!" - Queens of the stone Age
I took the call option because I had a look at the daily, 4 hourly, 1 hour, 15 mins and 5 min charts. They all had bullish trends. I drew a trend line on the longer timeframe and drew one on the 5 min. I didn't set any targets because I'm not really 100% on that yet. I'm not too sure on retrace means???? Does it mean that price retraced back the opposite way prior???
I had a look at your revision of my trade. I'm pretty sure if most things and I just need more practise. The only thing I'm unsure is your purple target line. I understand that it is a target line but why is it place there??? Why did you not place it at the tops of those highs where you drew in orange. Maybe I'm getting mixed up between S/R lines as opposed to target lines. But yeah I think I have a bit of an understanding with all that.
On my next trade I might use this scenario as an example if the condition of the charts permits.
Once again thanks for your lecture!!!! Lol.
It's the only way to learn right!!!
I think I just got it with that target line!!! Is it placed there at that price because it's about 15 mins from the bottoms of the candle where it starts to go up (support)???