Out of targeted +114 pips, I could only get +53 pips out of it
as my trailing stop got hit; though, price traded eventually to my target. I was sore a little. I always knew price was
going to trade higher but since I couldn’t find a good price to re-enter before price resumed its rally, I sat out of it. It was a good setup and I am
confident I was thorough while executing it.
Trend line cluster was drawn by joining the swing lows of
4-hour and the corresponding swing lows on 1-hour time frame.
Fibonacci retracement-expansion cluster is the sub-pattern.
The region covered by the green lines is the cluster and it was almost in
confluence with the trend line cluster. This development delighted me. Soon
after price tested the confluence and formed a reversal bar, bullish divergence
formed (note line on stochastic).
I went long at 0.9928, Stop Loss was set at 0.9890 (38 pips-
below the swing low), and Target was set at 1.0045 (114 pips – at a
resistance).
EVENTUALLY
The entry was timely as there was less than 10 pips drawdown
before the rally began. It formed a fractal at first (regard the circled region)
only to trade higher to meet another resistance – the thick trend line.
I knew what had formed when it formed so I was calm. I drew
a Fibonacci trend line from swing “A” to swing “C” and from swing “B” to swing “C”.
The resulting Fibonacci retracement –retracement cluster was seated exactly
where price bounced from. It was perfect. I was perfect.
But price made a u-turn once again and this time it stopped me out. My trailing stop had locked in 53 pips before it got hit. I was going to jump right back into the trade if price tests the trend line. But the decline stopped at the Fibonacci retracement-expansion cluster (regard the 3rd shot). The trend line was always going to be a safe haven; too bad price couldn’t make it that far.
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