I should not have taken this trade, as it went against my trading rules, not conforming to an ABC setup.
However, I liked the look of the SUPCON, with confluence of:
- D1 Bull Channel
- D1 Bear Channel midline
- H1 EQZ
The mistake I made here was to not give attention to the 11500 level just below this SUPCON, which the market would probably use as a target.
I should have let price test this level first, then buy on the way back if the trade still looked good!
A sell trade with a generous Stop Loss, and Profit Target at PM High would have worked out well here!
If you were confident with the Key Structure resisting price, a closer Stop Loss would have seen even bigger profits.
A lovely looking setup here. A clear impulsive move after a drop in price from the High at 8am. Retracement to the confluence of:
- H1 Bear Channel midline
- 5min ema
- H1 EQZ midline
- M5 EQZ midline
- GZ 61.8
I wasn’t at the computer as this formed, so wasn’t ready to take this trade. The only problem that I would have against taking this, would be that price is coming up off the D1 EQZ midline and PM High, and yesterday I predicted that price would be moving up to the top of the D1 EQZ, therefore look for Buy not Sell trades.
However, if this were to happen, I would expect at least a double bottom at the PM High and D1 EQZ midline levels, so selling back down to them could have worked out, especially with such a clean setup and good confluence of key structure.