Here are some confluences happening with this currency pair at the moment that's leading me to short:
1. Price is at resistance of this consolidation channel.
2. There's a 1.618 fib extension rejection.
3. Bearish candle engulfing a shooting star.
4. The rr ration is good (which in my opinion is the most important).
1. Price is at resistance of this consolidation channel.
2. There's a 1.618 fib extension rejection.
3. Bearish candle engulfing a shooting star.
4. The rr ration is good (which in my opinion is the most important).
Trade closed: stop reached:
Got stopped out but I went back and analyzed my mistakes. I simply didn't give my stops enough room. Next time I take a short position at the resistance of a bearish consolidation channel, I'll have to place my stops above the previous higher low, even if it means having to go deeper into drawdown.
"The stop needs to be where the stop needs to be" ~ David Paul, Managing director of VectorVest.
"The stop needs to be where the stop needs to be" ~ David Paul, Managing director of VectorVest.