Pattern is from 4hr. A reversal bar on the resistant side of the channel is a green light to go SHORT. However, I will be mindful of the stochastic -- a bullish divergence is a bad omen -- I will stay clear of the trade.
EVENTUALLY
Price formed a RISING WEDGE on 1HR, tested the 4HR channel and did as though it had broken it but it did in fact went into a trend line cluster(a side of channel is taken as trend line while the other trend line (black) was drawn from lower highs on 1hr).
While inside the cluster, price appeared to be testing the resistant side of the wedge. I had more reason to sell but I had to still check what the stochastic had to say about the development -- and it signaled a bearish divergence. I was more than sure.
I sold at 0.7711 with a trailing stop which equaled my SL, SL at 0.7748 (37 pips) and TP at 0.7593 which is the other side of the channel.
Price broke through the wedge and went down to my target.
It was a good trade.
PROFIT : + 120 pips
just amazing!
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