A Morning star bounces off the the fib cluster between 50.0 and 38.2 fib levels. This is a strong bullish signal as my bias is that price will head as high as 1.1451 forming a new high above the previous high.
1.1451 is a previous resistance on 4HR and also on DAILY TF which makes it a potential sell zone -- Hence, the reason behind me setting my target at this level.
1HR
A triangle has just formed and an MSL has just bounced off the support side of the triangle which is a bullish signal.
SL is set 42 pips away from entry(Buy Limit @ 1.1347). I opted for a pending order rather than an instant execution because I wanted a better risk to reward ratio.
If all goes well, Profit will be about 104 while risk will be about 42
EVENTUALLY:
At 1.1347, after price pulled back from the other side of the triangle, my pending order was executed.A doji formed on the support side of the triangle. To me, bullish pattern from 4HR coupled with this newly formed triangle, it was matter of time before price rallied to my target. I was that confident.
However, it didn't turn out that way. Price broke out of the support and declined with frightening stride.
I was stopped out at 1.1305 -- -42 pips away from entry.
A stop as high as 42 pips always seems far from the norm for me. I searched through my chart over and over again to check what went wrong, couldn't find one -- I still can't. I believe this trade is a perfect definition of "You just can't always have it".
Apart from setting a high stop, I think I did well though unfortunately, it turned out to be a loss.
PROFIT/LOSS: - 42 pips
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