Practical Exercise 8 – Battle Plan
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Dear All,
The screenshot is today’s M15 EURUSD for which I formulated the following battle plan:
<span style=”line-height: 21.8181819915772px;”> </span><span style=”line-height: 21.8181819915772px;”>From the 60 min chart: p</span>rice is above MOR and control is with the buyers. The nearest overhead resistance is plus 200 pips. There are no major trend line intersections to worry about. There is no relevant eco news. Fibo extensions highlight levels to watch at plus 45 and plus 65 pips otherwise the path is clear above.
From the 15 min chart: price is above the DOR high. There is untested resistance plus 85 pips from yesterday. Gann Eights, the 60 min Fibo levels and the M15 resistance from yesterday show a confluence of targets around plus 65 to plus 85. Should the price break these levels it’s clear above to plus 200 pips.
A bull engulfing candle prints at 0900. Tight stop loss is – minus 20 pips. Therefore worst case reward/risk ratio is 3.
The screenshot shows a simulated entry order at 1.12089. Stop loss was 1.11889 but I’ve moved to just better than break even based on Fibo levels of between 50 and 61.8.
Stopped-out on the trailing stop at 1245, (marginal profit).
It’s still a good candidate market, so back to looking for engulfing candle and writing up notes.
Good practice for the real thing!
Regards,
Simon
Hi Simon,
That’s lovely methodical analysis. I like the way you have thought your way through the process. This is exactly the kind of thing that can be so helpful when you go back and review your approach. Recording your thinking processes like this can really help you spot areas of strength and weakness.
Rich,
Just thought it worth pointing out to everyone that when preparing the daily battle plan there is an easy way to arrange the ‘thumbnails’ as you call them. Rather than size each one individually you can go the the Window menu and choose ’tile windows’. Hey Presto! all done in a flash (yes there is a hotkey combination also which is Alt+R)
Regards
John
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