MY last trade on this pair "BUY SIGNAL: ABCD ON AUDUSD" ended with an infinitesimal gain in pip -- 1 pip to be exact. That was a long time ago and I hoped earnestly that this current trade wouldn't follow that path.
The setup was spotted on 4-Hour time: Lower lows had formed successively which evidently is characteristic of a downtrend. Trend line(thick black line) was drawn joining the close of the swings and another(thin black line) was drawn on 1-Hour time frame joining the close of the swings.
In the light of sourcing after a Sub-pattern, I drew a Fibonacci retracement tool from swing "1" to swing "3", and another from swing "2" to swing "3", which formed a Fibonacci cluster (regard the green lines) inside the trend line cluster. The confluence of trend line cluster and Fibonacci cluster is a "sell zone".
When Price traded inside the region, it bounced off almost afterwards.I went "Short" at 0.7241, Stop Loss was set at 0.7267 (26 pips), target was set at 0.7157 (84 pips -- a new low below the most recent low). Significant levels that can bounce price against me were marked out.
EVENTUALLY
Price declined. But unfortunately, when price formed a Market Structure Low after testing the trend line cluster (support), I exited with 35 pips as per my Exit Rules.
It is however heartbreaking to realize that price declined further to my target soon after I exited.
Profit/Loss: + 35 pips
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