Disliked{quote} I agree....gold followed the scrip pretty well............as per your teachings, the bottom was successfully located......still holding.... But in G/U, though the top of A ( Sl) was not taken out, but the 78.6 fobo was respected only above 4h charts. In 15 min charts , it had closed above 78.6 fibo. I wanted to know, how do you deal with this situation........since i was trading on 15min chart only. And yes , here also, actually, our SL for aggressive C sell is still safe........ My point is, if i happen to use just one timeframe for judging...Ignored
The differences from a 15M to a 4H are so vastly different that what you are doing is comparing apples to oranges. It just doesn't work. All of the information was right there. In the video I posted I talked about the line in the sand and the point where you are wrong. Did price ever reach that? Did price ever fail on your expectation? Sure price closed above the 78.6 not by much but all that means is that the traditional ABCD was no longer a validated set up.
Price produced a beyond expected deep correction which is a huge clue on overall breakdown on the Bears. Also that correction as you said did not give you the Intel you needed to make a decision to short. I truly do understand you entry point and that was not the problem. But you must understand the context of what is happening around you. You need to know there you are wrong and that price can always go against you.
When this painful experience comes in and you are in draw-down, this is when trade management often take a backseat to those damn emotions. It is this precise moment when we have to think clearly follow your trade management rules it makes the pain go away. You let fear in to help you manage your position and that usually ends up bad for you.
The only thing that happened is that price came back to test structure, a much deeper then expected correction which should have put you on alert but not to abandon your expectations or the facts of your case. Price never made a NSH against your expectation so your reasons for getting into the trade were still valid. The traditional ABCD pattern was invalidated but as long as that structure holds you can still expect a weak NSL or a retest of the lows because nothing else can be expected.
Knowing that your expectations have weakened but are still in play your trade management becomes very important. You need to put your focus on protecting your trade and capital by removing risk as soon as possible and by managing your trade based on facts.
Have I properly answered your question? Stay objective use the facts to help you make decisions follow your rules and keep those destructive emotions as far away as possible I know it'd the hardest battle we fight but it is also a battle you can win!!!
I will not wish you luck even though I have done that many times before to different traders the fact is we do not trade with luck because we are empowered Traders who are in control and own our process. Traders who can read a price chart and make sound decisions based on facts and what we see and not on what we think.
If you fail to plan, you plan to fail.