sean2's ETH/USDT Trade +$696.00

🗓️ Weekly Trade Journal – ETH (Ethereum)

Strategy: Volume Profile (Value Area High, Point of Control, Value Area Low)

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1. Market Context
    •    This trade followed the previous Ethereum short, which was exited earlier.
    •    The new setup was intended as a rejection short from the Point of Control (POC), targeting the Value Area Low (VAL) again.
    •    The Point of Control was located around 3,510 USD.
    •    Market environment remained highly correlated with Bitcoin, meaning ETH movements closely mirrored BTC price action.

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2. Entry Trigger
    •    The plan was to wait for a confirmed 1-hour close below the POC to validate the entry.
    •    Instead, the trade was front-run again — entry was taken at 3,496 USD, before confirmation.
    •    The 1-hour candle closed above the POC and even above the grey resistance box, which invalidated the entry under the system’s rules.
    •    The valid trigger would have been a breakdown and close below the POC.

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3. Trade Details
    •    Entry: 3,496 USD
    •    Stop Loss: 3,605 USD
    •    Take Profit Target: 3,332 USD (Value Area Low)
    •    Actual Exit: 3,382 USD (early profit-taking)
    •    Reason for Early Exit:
    •    Bitcoin and Ethereum showing strong correlation
    •    ETH reached lower timeframe support before hitting the VAL
    •    Market likely forming a local bottom at that point
    •    Result: Profitable trade, but higher stress due to early and invalid entry.

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4. Trade Rationale
    •    The idea was to trade the rejection from the Point of Control with a mean-reversion target at VAL.
    •    Execution mistake: Entered before confirmation (again front-run).
    •    This led to unnecessary drawdown and emotional stress, as the position came very close to the stop-loss.
    •    Despite poor timing, the trade still worked, mainly due to broader market alignment with BTC weakness.

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5. Execution & Emotions
    •    Execution quality: Moderate to weak — rules not followed, premature entry.
    •    Emotional experience: Increased anxiety during drawdown due to lack of confirmation.
    •    Positive: Maintained composure, managed exit rationally at a technical support.
    •    Improvement:
    •    Always wait for 1H close below POC before entry.
    •    Proper confirmation would have reduced stress and improved trade quality.
    •    Smarter stop placement after confirmation could have enhanced R:R ratio.

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6. Lesson Learned
    •    Do not front-run confirmation candles.
    •    Waiting for the proper signal (1H close below POC) preserves psychological balance, minimizes drawdown, and optimizes risk-reward.
    •    Discipline > anticipation.