Judging by price action on 4-Hour time frame, the overall trend is a downtrend which means price is more likely to stoop lower than rally upward. However price did make it high enough to form a Bearish Flag. Bearish Flag, uniquely, requires one to set the length of the pole as target. In comparison to an actual flag, the channel is the piece of fibre that swishes in the gust while the prior price action (indicated by the arrow) is the Pole.
In this case, the length of the pole is 114 pips which is how far down I intend to set my target. Regarding a signal to go Short, any reversal candle stick on the resistant side of the channel will suffice. I checked 4-Hour and Daily time frame for levels that can stop price from getting to my target, I couldn't find any. I suppose the only level that would stand between my entry (if I ever get to enter into the trade eventually) is the support side of the channel.
EVENTUALLY
Loses are bad; worse when they happen in good trades. I have an almost perfect record of trading Flags. I was almost certain price would head down to my target given the parameters surrounding this trade -- everything seemed perfect. Then again, I suppose perfection is an abyss.
When price finally got to the resistant part of the channel, it bounced off with a thick bearish candle; and created grounds for Stochastic to signal a Bearish divergence. Everything looked perfect (I am beginning to dread this very word) and I obligatorily went Short at 1.5242 with Stop Loss at 1.5264 -- 22 pips away from entry-- and Target was set at 1.5129 which is 113 pips away from entry.
It backfired. Not long after my entry, immediately after London opened, a thick black bullish candle stopped me out. Technically, I do not know what went wrong.
Profit/Loss: -22 pips
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