On 4-hour time frame, trend line is in confluence with Fibonacci cluster (green lines) upon which a few reversal bars formed; Stochastic forms bearish divergence. A sell limit was placed at 120.03, take profit set at 118.89 ( 115 pips away from entry), and stop loss at 120.35 (32 pips away from entry). Target is a confluence between trend line cluster and a horizontal support from 4-hour time frame. However, since I make it my business to mark out levels that can prevent price from getting to my target, price level 119.24 is a significant turning level having served as a support in the recent past.
Eventually
It is sad (though, nonetheless exciting) that my first position, after a lengthy break, is a loss. Everything looked perfect not until price broke out of the 4-hour trend line(thick black trend line). I reasoned: "what could price be doing?". It prompted me to draw a trend line joining high A and B. I felt if there is any explanation as to why price made it as high as above the 4-hour trend line, it is to test this resistance -- at least, that was all that could prevent my Stop Loss from getting hit.
It didn't turn out that way; though a couple reversal bars did form on this level, price reached far enough to stop me out.
Profit/Loss: - 32 pips
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