Bought: 161.521
Take profit: 161.726
Profit: $170.15
Analysis Using Top-Down Approach
Daily Timeframe
Overall market structure is an uptrend, with higher highs and higher lows.
4 Hours Timeframe
The overall trend is bullish in the 4 hours timeframe.
1 Hour Timeframe
Price broke structure, i.e. broke the last lower high, and created a new higher high. It is now in the major supply zone. Wait and see what the price will do at this point. It can go either way.
Go down to the 15 mins timeframe to observe the price action.
15 Mins Timeframe
Look for a buy.
Wait for the price to come down to the demand zone, or break through the new higher high. Then enter for a buy.
Set alert at 161.13 and 161.49.
Update
Alert was triggered at 161.49.
Opened the platform and analysed the chart on the 15 mins timeframe. Price broke through the new higher high – bullish sentiment. Marked up the new demand zone.
Entered for a buy immediately at 161.521 (note: mistake as I entered the market based on my emotions!). Placed stop loss at 161.25 and take profit at 161.726.
What I should have done: I should have waited for the price to come back down to the demand zone, as it had happened later on.
Note to self: Don’t trade based on emotions! Wait patiently!
