NZDCAD 14 May 2021 Short Trade -1.0R Loss

TRADE REASONS:

Chart analysis showed the following when the trade was considered on 14 May 2021.
1. Daily chart: 10-day MA was angling down.
2. 4hr chart: Price has retraced up to a S/R zone after stochastic %K reached >80.
The trade plan was to go short at the S/R zone with initial stop 1x ATR above and take profit at the next opposing S/R zone.

NZDCAD Daily and 4hr charts

ENTRY:

Entered short at 0.8760 on 14 May 2021 22.16hr MYT at the S/R zone. Stop order was placed 30pips above the entry at 0.8790 based on 1x 14-bar ATR. Take profit order was placed at 0.8670 at the next opposing S/R zone.

EXIT:

Stopped out at 0.87901 on 15 May 2021 04.55hr MYT before the market closed for the weekend. Lost 1.0R on the trade.

LESSON LEARNT:

My directional bias was correct but I entered too early. The S/R zone above was superior since it coincided with the declining 10-day MA line and Fibonacci 0.5-0.618 retrace level.

Disclaimer: 

Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.