I knew this was always meant to be a disaster waiting to happen. Against all rational approaches to executing a position, I inappropriately hoped price would move the way I wanted rather than making sure all odds were in my favour before trade-entry. A lot of the odds were in my favour though but definitely not all, and that in itself was enough to bounce price against me.
On 4-Hour time frame, a demand channel was spotted while on 1-Hour time frame, a harmonic pattern formed.Bearish divergence also did form (note line on Stochastic). The region covered by the green lines is the "Potential Reversal Zone". A bounce off that region was good enough as a sell signal but coupled with the fact that it was bouncing off the channel at the same time made it a better sign. The brown trend line was drawn to find support level and price seemed to immediately bounce off it after the thick bearish bar.
I knew going Short despite seeing this had happened was a very bad call, yet I did because I wished (which totally belies my true nature) would simply decline to my target -- Heck, like it would happen because I wanted it. Sell position was entered at 86.96; stop loss was set above the "Potential Reversal Zone" at 87.34 (38 pips away from entry); and target was set at 85.83 (113 pips) -- support side of the channel.
EVENTUALLY
Price bullished high and stopped me out. This position adds to my list of crazy trades.
Profit/Loss: -38 pips
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