Ichimoku $EURCAD Post Trade Analysis

Ichimoku $EURCAD Post Trade Analysis.    Yesterday, we posted a Bearish trade setup for the EURCAD on 60m for the Forex Currency market.

Overnight, we got stopped out at break even.

In every losing trade, you need to do a post analysis to determine what happened.    If you notice the same “pattern” for loses then you need to adjust your trading plan.

Remember, this is a probability “game”.   You will not win 100% of the time.    You will lose.  The key is min. when you loss and max. when you win.   Also with time, your win/loss ratio should improve if you keep on analyzing your losing trades.

Here is the post analysis.  First, notice, we are trading in a consolidation pattern.     The trade setup occurred in the middle which means this is an low probability trade.   It is aggressive.  The best high probability trades are trend and pull back because you have some type of momentum.   We have no problem taking aggressive trades in consolidation pattern as long as it fits our rules and risk is low.

The charts is below which shows the setup.   Notice, we took the trade off the Kijun Sen (Green) without any IMTF level.   This mean it was aggressive because this resistance could be only for this time frame, not any.   This is why there is no IMTF™ dot or cross.

Even if there is a cross, if you look backwards, notice there was a important IMTF™ Support in the past (#4) that is something we would encounter before reaching the 3:1 reward/risk of the pivot low.   This is not good.   You should not have a important IMTF™ support to retest the pivot low since that is the 3:1 reward/risk.   This past IMTF™ would stop the 3:1 reward/risk which would not be good for a money management perspective.

2017-01-31_072138_eurcad

In conclusion, if you are going to take a trade in a consolidation pattern, you need the following:

  1.  IMTF™ Cross/Dot at Kijun Sen (green)
  2. There should not be any critical past IMTF™ before the 3:1 Reward/Risk

Remember, the losing trades matter….not the winning trades.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

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About the Author Manesh Patel