Sold: 156.38
Stop-out: 156.52
Loss: $120.55
Analysis Using Top-Down Approach
Daily Timeframe
Price has broke the market structure, potentially turning bearish. Look for a sell.
4 Hours Timeframe
Price in the 4 hours timeframe has broken through the last lower low, signalling a downtrend.
Update
1 Hour Timeframe
Look to enter for a sell when the price retraced up to 61.8% Fibonacci retracement. Go down to the smaller timeframe to observe the price and enter for a sell position.
Set alert at 157.57.
Update
The price actually went up on the way to retracement level. Should have waited patiently for the retracement to the order block level (where the LIQUIDITY area is) first then enter for a sell position.
30 Mins Timeframe
Did not wait for the price to retrace to 61.8% in the 1 hour timeframe as there’s an order block in the 30 mins timeframe (mistake!). Marked out the order block. Go down to the smaller timeframe to enter for a sell.
Set alert at 156.193 (triggered).
Update
Instead the price is going to the retracement level.
3 Mins Timeframe
The price is creating lower highs and lower lows, signalling a down move. Go down to the smaller timeframe for a sniper entry.
2 Mins Timeframe
Entered a sell position at 156.38. Placed stop loss at 156.52, which is 14 pts away (tight stop loss to minimize losses).
Take profit at the next swing low, i.e. 155.496.
Update
The trade was stopped out at 156.52.
Lessons Learnt
PATIENCE! Wait patiently for the price to retrace to the order block (liquidity) zone on the higher timeframe. Price will retrace because liquidity is happening to push the prices back up/down to fill the inefficiency. Don’t rush to enter for a trade. Wait to enter the market only AFTER the liquidity has finished!
Trade with the big boys and NOT against them!