This week, I have decided to trade in a consolidated commodity ; Platinum.
As you can see on the Monthly Chart, market has a higher high and higher low ( conflict between two trend indication of a bear/bull market). What really got me interest in this commodity was the daily chart.
Price action on the Daily Chart shows a “Textbook” bearish short-term trend where market is heading back to key level (seeking supply) and, that was what enticed me. Obviously, being risk conservative, I entered on a smaller time frame.
On the 4 Hour Chart, market have shown sign of reversal as circled, which has led me to execute an order. The first trade made was caught up with a loss as you can see market has slapped me out. What led to my second entry was a Doji formed on daily while having another reversal pattern on 4hour. This time, after losing the first trade, I have decided to reduce my risk more by trading on the 1 hour timeframe.
On the 1 hour chart, I waited market to show signs of exhaustion before placing an order. Ultimately my second order was executed with a 1:4 RR ratio. Currently, market is trading in its opposite short-term trend…. hopefully market rides the trend.
A winning trade doesn’t mean you’re good, A losing trade doesn’t mean you’re bad