Learn how to handle a tricky trade

Learn how to handle a tricky trade 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Learn how to handle a tricky trade

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Introduction

Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using the Bottoms Tops Signal in combination with the Levels and Zones, and the RSI Exhaustion.

Our trading indicators for TradingView are indicating an interesting opportunity that totally fits into our swing trade forex strategy so we get involved in this trade.

Trade setup – 21 Jun 2019

Learn how to handle a tricky trade Setup 1

We have a clear buy opportunity on AUDUSD which is confirmed by all our trading indicators, in fact we have:

    1. A higher bottom
    2. A higher low in the RSI Exhaustion (it is rising, just like the price)
    3. Bearish exhaustion in the RSI Exhaustion (it is colored red)

Moreover, once we calculate our target, by projecting our impulse to the upside, we realize that ends up pretty much at the same level of a major resistance displayed by the Levels and Zones indicator.

This is a further confirmation that we have a high probability trading setup, the ones that we look for in the markets.

Trade update – 24 Jun 2019

Learn how to handle a tricky trade Setup 2

The price rapidly moved higher about halfway into the target and then formed a top, signaled by the Bottoms Tops Signal.

As of now, it’s not a big issue but since we are pretty far away from the target, we must pay close attention.

Trade update – 25 Jun 2019

Learn how to handle a tricky trade Setup 3

The price is now slightly higher but formed another top, and the RSI Exhaustion is moving lower.

We should still expect the upward movement to ultimately reach our target but the current price action is a bit concerning and since we must always preserve the trading account, we decided to move the stop loss to breakeven.

Of course, this was also possible by the fact that we are now pretty far away from the entry level and so the price can still come down a little bit without closing the trade.

Trade update – 26 Jun 2019

Learn how to handle a tricky trade Setup 4

The price is trying to move lower but, at the same time, it is “attracted” by the resistance, which is our target.

We say “attracted” because we know from years of experience trading with the Levels and Zones that, once those major levels appear, the price likes to test and retest them multiple times.

For the sake of safety, since this became a rather trick trade, we moved the stop loss a bit higher.

Well, if you want to learn how to handle a tricky trade, then you’ve found a good one!

Trade update – 26 Jun 2019

Learn how to handle a tricky trade Setup 5

The price almost reached the target and then retraced a bit.

At that level, too many beginner traders got emotional and started cashing-in their profits.

We did not, because we have confidence in the setup, and so we simply wait for the target to be reached.

Trade closed – 27 Jun 2019

Learn how to handle a tricky trade Setup 6

And eventually, the price reached the target even if we got some tricky configurations.

The trade started as any other regular trade, but then it turned into a rather tricky trade, however, this is not the first time we are faced we the issue of understanding how to handle a tricky trade, so we just played safely and maintained full rationality. Even if some contrary signs appeared, we continued to track the price action by moving our breakeven level up, and ultimately the price reached our target for an almost 4x profit.