This setup had all the ingredients to usher a position to its Target but for one thing -- a ceiling hovering over it by a few pips. I didn't spot it at the time of taking the trade hence my predicament.
Trend lines were drawn. Thick black trend line was drawn joining the Close of swings on 4-Hour time frame while another, thin black line, was drawn joining the close of Swings on 1-Hour time frame. This is a trend line cluster and together they mark-out significant levels from which price may bounce.
Price broke through the trend line cluster (decline from swing 3) into the Fibonacci retracement cluster. For the Fibonacci retracement cluster, a Fibonacci retracement tool was drawn from "1" to "3", and another was drawn from "2" to "3" hence the Fibonacci retracement cluster (region covered by the green lines).
For a quick and precise entry, trend line was drawn (from swing 3) joining the Close of lower Highs upon which price appeared to have formed a Dragonfly Doji. Bullish divergence also formed (note line on Stochastic). That would have been a good spot to go long but I hadn't spotted this setup at that point as I was studying another pair. So when the next bar traded high and since entering at that price would have meant setting a wide Stop, I opted for a Pending Order at 0.9844.
Price didn't pick up my entry; instead, traded higher. I shifted my entry to 0.9881 just so it could get picked up; Stop Loss at 0.9844 (37 pips -- below the swing low) and Target at 1.0009 (127 pips).
EVENTUALLY
Little did I know this would mean Buying exactly on a resistance. If I had drawn the other trend line, I would have known. Perhaps I was too hasty given that I was anxious to not miss this trade as I had missed a really good trade in the recent past.
Profit/Loss: -37 pips
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