In a sequence of my monumental consecutive losses, this position just made it five.
This is not a supply channel. The channel (initially drawn using the close of highs on 4-Hour time frame) was distorted when price broke through resistant level to form "C". However, the support side of the channel is still valid and could in every way function the same way a trend line would. The black thin line (at the support) was drawn using the close of prices on 1-Hour. This is a trend line cluster and the region covered by the lines (blue and black) is a "buy zone".
The set up obvious when pattern was read from 1-Hour time frame was a SHARK. This is one of the harmonic patterns and the fact that its Potential Reversal Zone ( region covered by green lines) was in confluence with the trend line cluster increased the chances that price would rally.
Price formed doji immediately after hitting the cluster. I felt obliged to go long. So, I bought at 135.55, stop loss was set at 135.23 which would be the swing low if the bounce was ever to happen; and target was set at 136.49 which was another trend line cluster at the opposite end.
EVENTUALLY
It didn't take long before I was stopped out -- actually, it took just a long, mean, bearish bar that was probably propelled by the news. Technically, I didn't see this coming.
Profit/loss: - 32 pips
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