In my recent impulse trade, I observed a notable setup at the closure of a 4-hour bearish candle. Switching to the 30-minute timeframe, I noticed accumulation occurring. When the subsequent candle broke the low of all previous candles and accumulation, I decided to enter the trade, ensuring to place my stop-loss above the accumulation area to manage risk effectively.
Adding to the analysis, the Asian session opened with a gap up, signaling a potential price movement to fill that gap. While the overall fundamentals hinted at a potential decline in gold prices, there was anticipation surrounding upcoming data releases during the NY session, adding an element of uncertainty to the trade outcome.
To mitigate risk, I adhered to my risk management strategy, limiting my exposure to 1% of my trading capital. Additionally, after closing 70%-80% of my trade at the gap zone, I opted to leave a runner to capitalize on potential further price movements.
This trade exemplifies the intricacies of impulse trading, where careful observation of price action and consideration of fundamental factors are paramount in making informed decisions.