Entered an order with Level 2 and 3 confirmation. So ignore it for the moment. Will explain the trading logic with Level 1 perspective.
From the WEEK time frame, realized that there is a big gap between the current candle and the moving average (MA). This gap will either be closed by price going towards the MA or the price ranging sideways to let the MA come towards the price. The price obviously is represented by the candles.
Looking at the H1 and H4 chart, the entire week range is covered by a single H1 candle. Hence expected the price to go towards the MA rather than the MA coming towards the prices. This will be trade on a retracement and not on a trend. Hence it is highly risky and advisable to use lower leverage with at least 10000% margin level. Before entering an order in a day, at least 4 to 6 nos. of H1 candles should have been completed. In this case more than 18 candles had been completed. Price should be close to the MA for order entry and the price was close to MA in H1. The picture below is a frame before the BUY order entry.
For entering a BUY order,the prices should be close to a low zigzag (ZZ), the yellow MA should be locked above black MA. A BUY should ideally be after a few black candles as it would mean prices close to the MA. Most importantly, a BUY must always be below an opening price of a candle. In this case, the price is below the opening price of the month, week, day. Looking at the price actions in lower time frames M15 and M5, the chances of a black candle or the prices going below the opening price of the current H4 candle looked weak. Hence decided to enter the BUY order at least below the opening price of the current H1 candle.
All the above points mentioned in the check list does not guarantee that the prices will continue moving profitably. It is just a strategy to mitigate the risk. It is clearly possible that the prices can move downwards eating up the profits or even wipe off the account. But, with the prior experience and the position of the MAs, expect it to continue the upward trend. The last 5 candles in the Week time frame has been black candles and expect the next one to be a white candle. Will wait for the first 2 H4 candles to close before deciding on exiting this trade. My guess for the next week is as below:
