A dragonfly doji formed on the cluster between the trend line and channel. Stoch appears to be forming a bullish divergence -- I guess that completes my green light.
I bought at 0.7585 with a trailing stop which equals my SL and set an SL at 0.7554 and target at 0.7680
Since it is my business to mark out the levels from which price could bounce against me, I popped out the Fibonacci tools and got the fib retracement clusters and also using the Fibonacci retracement and the Fibonacci expansion, I got approximately the same level which coincidentally is close to the resistance.
Hence, I will be very vigilant and be ready to exit as soon as a reversal bar forms on this level. I wouldn't want what happened during the trade GARTLEY ON AUDUSD repeat itself. And also, since this is a counter-trend trade, I have to be really fast and decisive.
Risk: 30 pips
Target: 95 pips
EVENTUALLY
Having the full knowledge of counter-trending to be very risky, I took this trade because it comformed with my trading strategy. With the bullish divergence and a doji on the trend line cluster, I had reasons to believe price would aim for, at least, 0.7632.
It saddens me that it turned out to be a loss, but I would make the same call if a similar occasion unfolds.
I have no regrets.
Profit: - 30 pips
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