My losing trades - 25 Jan 2025

Only one losing trade taken on Bitcoin taken on the 23 Jan, which subsequently gets stopped out on the 25 Jan. Let us look to see if this was a good quality trade, regardless of whether this followed my rules or not.

If we look to the left what we can see is price moving down forming lower highs and lower lows until there is a surge back up to the upside. This surge quickly gets rejected at the previous high before the down trend.

Price collapses back down to even lower prices and then starts consolidating. As marked on the chart there was a clear resistance in this small consolidation range. When price broke the resistance with a bullish elephant candle I entered a trade.

The trade after entry began to move to the upside and made progress but after a couple of days the trade reversed back and took out the stop.

On reflection, if I had properly analysed the price action to the left and considered the strength of the rejection I would not have taken this trade. Yes this trade was valid based on the rules but the sheer strength of the price action and resistance levels didn't make this a high probability trade and a loss was experienced.

The only good thing about this trade was that my risk management was in play and I only lost the $62 that I was prepared to risk.

Trade Clearly!