Currently waiting for price to enter my OB zone, I will not put sell stops, I want to gauge momentum, analyse market movements and confirm on lower timeframes (1min) first before selling from the order block to correct the price imbalance that was formed yesterday. The reason why there are no sell stops is because of my worst-case scenario below. Also, take note that most tech companies performed well yesterday.
Worst case scenario : Price passes through my selling zone into the semi-visible grey block there. That block is the daily resistance I sold from the first time so if price gets there, that will be a very sweet, very juicy double top then after confirming on H4 and H1 timeframes, we drop it. Another scenario is price not reaching the marked sell zone and starts selling off immediately. If price passes the daily resistance (Semi-visible grey block) with heavy momentum, then I'll deem this analysis unsuccessful. Here we don't do the "if price doesn't go up then it will go down" type of analysis.. duh! We only have 2 options anyway, pick one.
Beaware of liquidity, volatility, and fundamentals. Trade safe, use a stop loss. Apply proper Risk Management.
Worst case scenario : Price passes through my selling zone into the semi-visible grey block there. That block is the daily resistance I sold from the first time so if price gets there, that will be a very sweet, very juicy double top then after confirming on H4 and H1 timeframes, we drop it. Another scenario is price not reaching the marked sell zone and starts selling off immediately. If price passes the daily resistance (Semi-visible grey block) with heavy momentum, then I'll deem this analysis unsuccessful. Here we don't do the "if price doesn't go up then it will go down" type of analysis.. duh! We only have 2 options anyway, pick one.
Beaware of liquidity, volatility, and fundamentals. Trade safe, use a stop loss. Apply proper Risk Management.
Order cancelled:
Markert followed the worst-case scenario! Damn!