I have always loved to enter at the most convenient price and often, I have profited greatly from it. However, there are very few times when price suddenly reverses when it is a few pips away from my most preferred entry point. This, like others, was a good setup and while I awaited a proper test on the confluence of the two channels, price took off without me. This has happened a couple of time – checkout FIBONACCI RETRACEMENT-EXPANSION CLUSTER IN CONFLUENCE WITH SUPPLY CHANNEL - and I still don’t know how to counter; and, I do not feel bad about it.
The blue channel was drawn on 4-hour time frame and when price zigzagged halfway to its resistance, I knew a sub-pattern had formed on 1-hour time frame.
The red channel is the sub-pattern. The confluence of the two channels was where I planned to sell. I aimed to sell when price tested the confluence with a close (as oppose to testing it with its shadow – like what it did), set my stop loss above the most recent swing high and set the target at the support of the blue channel.
EVENTUALLY
But price reversed without me, broke through the red channel and reached for the support of the blue channel.
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