My losing trades - 29 Jan 2025

My losing trade on the 29 Jan was initially entered into on the 28 Jan 2025. Let's look into the entry and the quality of the entry.

On the higher time frame the price action was bearish. This trade took my attention when there was a very strong bearish elephant bar off the 200 simple moving average.

Price started retracing to the opening of this candle before reaching this area where there had been multiple candles flatlining in price and not able to penetrate this previous level. Price then commenced a downward trajectory with a medium sized red bar. On what we see here the price action was suggesting a rejection of these levels. However, there was no power in this rejection.

Had this candle been another bearish elephant bar this would have been a valid trade but with the absence of a a solid rejection of these levels then I shouldn't have taken this trade. The lesson to be learned here is that for all trades I must stick to my rules and only trade large power bars.

Trade Clearly!