The region covered by the green lines is the PRZ. Anywhere within that could serve as a potential buy zone. While I agree that is a wide region I decided to use the trend line from 4HR to narrow down the region. That leaves us with the the green line closest to the trend line.
Price has formed a gravestone doji within that region. That is as good a buy signal for me.I love setting tight stops and high profits so I enter the moment I get the green light.
Target:
Main target is A(0.0 fib level). However, resistances between entry point and target are
B(0.7746) and C(0.7797).
Also, drawing a fib retracement from A to D(region with the PRZ if price actually turns) and C to D which forms clusters. The clusters as well are possible reversal levels.
Stop loss at X (0.7672)
RISK 35 WHILE PROFIT 135
EVENTUALLY:MY BUY was exited on profit of +17 pips which is very far from what I was hoping for.
It's sad, though I was prepared for it, that price turned at B. It turned with a bearish divergence(notice the region covered by vertical purple lines; stoch does not correlate with price).
Also, within the region covered by fib clusters (38.2 and 61.8) there is a confluence with former support (red line) on which shooting star formed. That was the beginning of the decline.
I placed a pending order(sell limit) which I hope will be triggered if price should rally a few pips.
SL is 30 pips away from entry -- above the shooting star and cluster
TARGETS:
Targets are the trend line from 4HR, 0.7670 and 0.7606 levels which are support levels from 4HR
Major target is 0.7606 which is 125pips away from entry. I made it my business to mark out levels that can bounce price.
RISK 30PIPS profit 125PIPS
AND...
I was stopped out by a spike. More than being sad, I was annoyed -- because I was so sure price would decline. Why then was I stopped out was what got me angry. I do not think my stop was too tight. I suppose it is one of those uncertain situations which market throw at us.A new divergence had just formed.I entered again with instant execution at 0.7743 with an SL of 30 pips. Soon after price headed for my target -- broke the trend line and on. Before I could start counting my eggs, price formed a morning star on 0.7694 which is a support. Since a broken trend line was close by, I felt price was only rallying high for a retest.
I shifted my SL (to 0.7735) to lock in a few pips. I intended on scaling in on seeing price forming reversal bars on testing the trend line. But it was in the middle of the night, and I was only half-awake. I promised myself that I wouldn't trade in such a situation since I make mistakes during these times. I could have scaled in and I would not still regret it if price did turn against me as it did.
In the end, I woke up in the morning to see myself out of the trade -- I was kicked out -- like that.
LESSON LEARNED:
I admit I was too careless. I locked in just a little of the pips which is almost nothing.
PROFIT/LOSS: +8 pips
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