As much as it pained me, I entered this trade again.I had executed a trade on this pair (and setup) that didn't go well: "GARTLEY IN CONFLUENCE WITH TREND LINE CLUSTER". So when evening star formed, I was presented with both an opportunity to go short and also a swing, above which I can conveniently set my stop without risking too much.
On 4-hr time frame, thick black trend line was drawn using the close of swings; while on 1-hour time frame, another trend line was drawn joining the close of swing highs from 4hr.
Also, on 1-hour time frame, Gartley formed. Gartley is one of the harmonic patterns. Its Potential Reversal Zone is in confluence with the trend line cluster (region covered by the green lines). This is a good sign. To calculate the Potential Reversal Zone (PRZ), Fibonacci retracement tool was drawn from swing "X" to swing "A"; another was drawn from swing "B" to swing "A", and a third was drawn from swing "B" to swing "C" - The Fibonacci retracement and extension levels formed a cluster which is the "PRZ".
When "evening star" formed at the confluence, I went short at 87.06, with Stop at 87.32 (26 pips - above the most recent swing high), and target 86.19 (87 pips - below the most recent swing low).
For levels that can bounce price against me, Fibonacci retracement tool was drawn from swing "A" to swing "D"; another from swing "C" to swing "D"- Fibonacci retracement cluster (indigo lines) formed thereafter. Thick and thin black trend lines are also levels that can stop price from stooping lower.
EVENTUALLY
I exited at 86.87 when price bounced off one of the Fibonacci retracement cluster to form a Market Structure Low.
Profit/Loss: + 19 pips
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