I had earlier posted about a possible turn around. The setup never materialized fully so I hung on to my short. It was hectic. I really would not have hoped that my first trade after months of being away would be full of actions. I suppose I have not become rusty after all.
The entry was precise. But while I waited for price to decline to my little target, the market environment turned bullish: A bullish flag among other setups converging at a common support. It never did go to fulfillment; instead, it formed a bearish Fibonacci retracement-expansion cluster and my bullish disposition went away. In all, I was calm while market changed hands and for that, more than the eventual outcome, I am happy.
It began with price testing a former support on 4-hour time frame. The thick black line was drawn on 4-hour time frame joining the Close of earlier swings.
On 1-hour time frame, Fibonacci retracement tool was drawn from B to A and another was drawn from B to C. The resulting Fib cluster is D (region marked by the green lines) and the Potential Reversal Zone (PRZ); and, it is in confluence with the former support. The thin trend lines were drawn to either ascertain my bias or mark out the closest support to my entry.
The red Fib cluster was formed by drawing Fibonacci retracement tool from A to D and another from C to D.
As soon as a doji formed in the cluster, I sold at 1.1376, set Stop Loss at 1.1399 (23 pips – above most recent swing high) and target at 1.1327 (40 pips – at the closet support).
EVENTUALLY
Market changed from bearish to bullish and then to bearish and I realized I could set my target lower: I moved to the closest support.
The decline came rapidly and swept through to my target.
Profit/Loss: + 75
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