[-1R Loss] Sell EURNZD

Trade setup description : Sell EURNZD

Price on 4H has very recently rejected off a Daily bearish OB- and has formed a bearish OB- in the process. I look to trade that with a clear liquidity target of equal lows. The trade setup is invalidated if price dips below equal lows to collect liquidity before giving us an entry.

Direction Bias

Even though W/D are UP/In-range, I am taking this bearish trade because price has just rejected off a daily bearish OB and has seen a very clear break down. Moreover, we are in a range on Daily & Weekly – so sell from premium, buy from discount.

Trade Setup on 4H
Setup on 4H
Daily chart
Daily chart
Weekly chart
Weekly chart
Monthly chart
Monthly chart

Trade setup confluences

  • 4H rejected off a daily bearish OB-
  • Price has created a failure swing high / OB- on 4H
  • Trade zone is in premium area
  • There’s a clear liquidity cluster of equal lows which should serve as our 3R profit target

Update : 17 May 2021

The trade got triggered overnight – but the price did not even blink and it completely rammed through my stop loss, handing me a -1R stop loss.

-1R loss

My learnings

  • Not many full body candles were in the trade zone – hence not many orders present
  • EUR pairs are generally in uptrend. Selling an EUR pair was probably not a good thing right now
  • I should use a live confirmation to get in the trade (for example a breaker forming as my zone is touched)

2

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