SELL: SUPPLY CHANNEL ON EURUSD

A supply channel formed on 4HR and a sub-pattern which is a symmetry triangle formed on 1HR. My bias is to go short when price tests the resistant side of the channel and the triangle with a reversal bar(and hopefully with a bearish divergence).

Target will be at the other side of the channel.

EVENTUALLY

Apart from the fact that executing a trade at the current market price (price at which I spotted this trade) would belie my trading rules since I would have to set a wider SL which was why I triggered no entry at that price, price was also close to the support side of the triangle which could also bounce price (perhaps) as far as the opposite side of the symmetry triangle which is in close proximity with one side of the channel -- I opted to wait until this had happened.

But it never did.The support got broken and price kept falling towards the other side of the channel.

On testing the channel, however, it formed reversal bars and bullish divergence which suggest it might be getting ready for a bullish ride.

This normally would have been my ideal trade since it required no stress and the risk to reward ratio would make a lot of sense had it tested the cluster (trend line and channel).

AND....

In times like this when one has consecutive missed trades by just a few pips, it provokes the thought of one's parameters for trade executions to be, perhaps, too strict -- I didn't buy into it though, but I did ponder it.

I missed out of the downward move of the channel for reasons explained above; and again, I missed the upward move.

I had it all planned out:

A buy limit at 1.0950, SL at 1.0914, the green lines make up the Fibonacci cluster which is in confluence with a previous support (which very likely may turn into a resistant), and with my target at the other end of the channel @ 1.1041, it has all the make up of a good trade.

I opted for a pending order rather than an instant execution because buying at the current price (price at which I spotted the set up) would mean setting a wider SL.

About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.