A trader reviews two recent positions using multi-timeframe analysis: a short Euro/Kiwi that exited early despite a larger move coming, and a long Kiwi/USD that hit its stop-loss. He walks through his process of spotting delta patterns and hidden divergences across daily, 4-hour, and 1-hour charts to time entries and manage risk.
Chapters
Hello everyone. So you're okay with the first one. We were looking for sales and we did get the sales. This is where the divergence and the breakout happened. The higher time frame range is fine, which means we are attacking immediately with the breakout here. The higher time frame direction is bearish, meaning that if we're on the 1-hour chart, that means the daily chart is showing us bearish delta pattern. And this is where the actual attack, uh, was triggered and the entry. Unfortunately, immediately after that, we got the spike up, the range, and then the move happened. But this first one was kicked out. And here is the 4-hour chart— not the 4-hour chart, the 1-hour chart. So that's where the trigger happened. This is the stop loss. And as we said, this is where we got the continuation lower after that, only on the second attempt. Daily chart, which is the more important in my opinion. What can we see here is that We got the bearish delta pattern right here. Hidden divergences from that high or from the swing high doesn't really matter. It still gives us hidden divergence, which means bearish pressure. So in our case, regardless of the fact that we might be getting leg A here. Something like that, right? Or leg 1 pullbacks and then another leg and then continuation or so. When all that combined together, we can see the price pushing to the downside. So the idea is even if you're 50% correct and the market is not yet ready to give us the new lows or double bottom, To enjoy from that pullback or continuation here. So that was basically the idea. Good delta pattern, obviously and clearly. We have the momentum, we have the trending structure, we have the divergence confirmation. So once we got the trigger on H1, we're ready to attack. By the way, when we're dealing with daily charts. The daily delta pattern, we're using 2 time frames: the 4-hour chart and the 1-hour chart. So overall, you will know that— you should know, actually— the 4-hour chart would be slightly more conservative, but it's not always going to deliver the setup. On the other hand, a 1-hour chart is more likely to catch a trade setup I'm talking about the breakout and divergence and all that. But in many cases, since this is H1 and it's kind of far away from daily, we might end up in situations like that where we, we could be kicked out right before the actual move is happening. So that's, that's about Euro Kiwi. Next one was Kiwi Dollar. Okay, again we got here the buy— not again, it's the first time we got the buy here. This time the 4-hour chart, um, divergence breakout, and the expectation is to see the continuation. For one last final leg to the upside before we get major pullbacks, reversals, corrections, whatever it is, right? We just care about the move up here. The move didn't, um, start exactly like boom, crash down like we saw in the previous one, but slowly, slowly managed to get to the stop loss line. Now what I missed to say here is that The higher timeframe range in that case was wide, and this is what the software told us. So once we got the breakout, it was a good idea. Of course, this is not mandatory, but that's why we have this filter, right? To tell you that this range here is too big based on the algorithm, which means it's a good practice to go ahead and use the pending orders. That's why we have them in the trade management. And by default, the idea is to go ahead and look for the 50% retrace, which is by the way the default line where the line will be placed in the 50% of that zone, and for the entry to be triggered right there. Usually when that happens, we can then push the take profit towards the top, the breakout zone. And this way, even if we get stuck in a range, and of course we don't get kicked out right there, we will be able to cash out at least the first target and then let it develop. In that case, of course, you can see that the stop loss was hit on the move down. So that's it for this week. If you have any questions about these two trades, please leave your comments below. And I'm wishing you a fantastic week ahead. Thank you.
