A similar position on this pair had failed no thanks to reasons pointed out in "DOJI ON FIBONACCI RETRACEMENT CLUSTER". I have since learned my lesson and I have been so graciously presented with an opportunity to prove it. I am not much of a fan to Second Chances but not long after that unfortunate trade, I was proffered another shot at this pair and ironically, it's the same bias as the previous one.
Pattern is from 4-Hour time frame as always. Thick black trend line was drawn to join the Close of swing Lows on 4-Hour time frame. A Fibonacci retracement tool was drawn from Swing "1" to "3"; and another was drawn from swing "2" to swing "3". Their retracement levels formed a cluster (region covered by the green lines) which is in confluence with the thick black trend line.
For precise entry, thin black trend line was drawn over swing highs on 1-hour time frame from which price appeared to have bounced. I went long with a "Buy Limit" at 0.9862, Stop Loss at 0.9826 (38 pips), and Target at 0.9980 (130 pips -- a higher high).
EVENTUALLY
Price traded low, picked my order, and traded lower than the previous low to form a bullish wedge. It missed my Stop by a few pips before heading for the resistant side of the wedge.
Price stalled on hitting the resistance. A handful of reversal bars formed after the test. Bearish Divergence also formed (note line on Stochastic). Since this conformed with my Exit Rule, I had to make do with 4 pips.
Profit/Loss: + 4 pips
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