SELL EURUSD: BEARISH FLAG AND FIBONACCI RETRACEMENT-EXPANSION CLUSTER (Closed)

Flags are always a joy to see. They tend to often appreciate time spent in analyzing them "pip-wise". I very much still remember how much optimism I poured into "SELL: BEARISH FLAG ON GPBUSD " and yet turned out to be a bad trade. In its defense, I referred to it as a "perfect trade that was never to be." Maybe, this setup will make up for that loss.

A bearish flag was spotted on 4-Hour time frame. The pole of the flag is the length from swing "1" to swing "2"; where the supply channel is the flag.

Also, drawing a Fibonacci retracement tool from swing "1" to swing "2", and Fibonacci Expansion tool from swing "2" to "3" and then to "4" resulted to the formation of Fibonacci retracement-expansion cluster; and it is in confluence with the resistant side of the channel.

To further enhance my bias, swing lows were traced out with the aid of a trend line and it appeared all three approaches converged at a point.

When price tested the convergence, it bounced off. I went Short afterwards at 1.1068, Stop Loss at 1.1109 (41 pips), and Target was set at 1.0956 (113 pips -- length in pips of the pole "1"  "2").

EVENTUALLY

Price declined fast! I have been at the receiving end of long negative bearish bars, but it sure was a sweet feeling to finally have one in my favour.

I do not know what news rammed price at my Target, and I honestly do not care.

Profit/Loss: + 113

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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.