After such a strong move to the downside, you could look for a buy in this rectangle for a return to the old bottom line of the pennant. A little risky since you're trying to catch a falling knife in a way, but if this shows another 4hr consolidation candle in this rectangle ill look to take a small position. Overall short biased on this pair now that the pennant broke to the downside but could see a nice bounce here.
Trade active:
Grabbed a small position. Looking for 3:1 or 4:1
Comment:
Looks like some stop hunting may have occurred. If this 4hr candle holds this long lower wick I think this will be setting itself up for a winner. Who knows!
Comment:
For me:
-Always be patient timing entries. These typically don't leave you in the dust if you don't grab an entry immediately.
-Leave enough risk room for any lower wicks that may be hunting stop losses.
-Continue to only look for these types of trades on dramatic moves to the upside/downside where we see another past area of consolidation before a strong move.
-Always be patient timing entries. These typically don't leave you in the dust if you don't grab an entry immediately.
-Leave enough risk room for any lower wicks that may be hunting stop losses.
-Continue to only look for these types of trades on dramatic moves to the upside/downside where we see another past area of consolidation before a strong move.
Trade closed manually:
Long hourly pin bar spooked me some. This play was definitely a good learning lesson. Will continue to look for these from now on.