SELL GBPUSD: FROM MEGAPHONE, FRACTALS AND TRIANGLE TO LONG BULLISH BAR THAT STOPPED ME OUT



I couldn’t do anymore than I did. I managed this trade professionally with every move calculated. It is sad, though, that it turned out this way. I executed a second time as the first was stopped out by a spike. While I may have been overly aggressive while placing the first stop, I did everything right in the second. It’s a shame price went north.

On 4-hour time frame, there were lower lows and higher highs which gave the impression of a ranging market. Price had just tested the resistance of a megaphone and bounced.

On 1-hour time frame, a trend line was drawn joining the close of recent highs and price appeared to have bounced almost perfectly from it. Also, bearish fractals formed and flourished my bias.

I sold after the development and set stop loss above the most recent high and target at a support.

EVENTUALLY





Price spiked and stopped me out. I was bitter, but I thought it to be a set back since price had not given sign of reversal. Trend line was drawn to connect the close of lower highs and I had another good entry point.
After I had entered, price ranged for hours: it formed triangle. And when I thought price was going to stoop lower since it had formed a new low, I soon realized it had just tested the support of a Fibonacci Cluster (regard green lines in last shot).

Price rallied afterwards to my stop loss with one mean bullish bar.
 I spotted the cluster after my SL had been hit, but I doubt if that would have influenced the outcome of this trade.
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About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.
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