Disappointments hit me hard. Whether it is a setup which I held in high regard and literally went from profit to loss ; or a setup (not properly analyzed) that was bluntly bad from the onset, I get hit really hard. In these times, I often choose to sit out of any trade until I am psychologically ready. I believe this is a good approach, but most times when I get back after this regimen, I discover good setups that I could have traded ; that have long left the shore. This setup is the latest in that list.
The overall trend was an uptrend which could be best spotted on 4-hour time frame. The thick trend line was drawn to join the Close of higher lows on 4-hour time frame; while the thin trend line was drawn to join the Close of higher lows on 1-hour time frame.
On 1-hour time frame, Fibonacci retracement tool was drawn from swing "1" to swing "2"; Fibonacci expansion tool was drawn from swing "2" to "3", and then to swing "3" - consequently, a cluster formed (region covered by the green lines). This in itself is a reversal zone and coupled with the fact that it sits on a trend line cluster (region covered by thin and thick trend line) increased its significance.
It was worth it: When price tested the confluence, it bounced with tiny bullish bars.I could have entered after this development and set my stop at 87.20, and target above the most recent swing high since in an uptrend, price is more likely to rally higher than stoop lower. Soon after, long bullish bars bullied the sellers.
0 comments:
Post a Comment