DislikedGBPCAD {quote} I was particularly interested in comments on the gap and the PRICE ACTION following that. }Ignored
I took another one, however, EC, on H4, which qualified. Entry was on BEEB, although I would have liked to get the PA signal a little more to the upside, in order to have the gap filled.
I am sorry for not having your shadow on that chart, but I am not using it for my higher time frame trading, I use only naked charts. But let me give it a try, though:
Big Boss: the immediate trend is down, and the last month candle had a decisive bearish close. This monthly candle is currently rejected by Big Boss confluence of static support and 200 ema. But it is a live candle, so a close is needed.
Boss: making lower lows and lower highs, profit taking at 200 ema. Although a hammer, having a long bias would be countertrend trading, because the trend is still down and the direction is still ordered from the Big Boss.
Worker: price in a downward move, broke the support, which tells me sellers still have power and intention to go lower.
And the entry is on H4, from the beginning of my post.
I got only 40 pips on that entry, because although I know the direction of higher time frames, I did not like how H4 printed two hammers at H4 S/R area. In my experience, having two PA signals is more powerful than one and can lead to a significant move sometimes, which led me to believe that those two hammers may push price up, so an exit would be the right thing to do, in order to protect the gained profits. Besides, should price continue going down on EC, I can enter again.
I think I can hear your voice now, Strat, saying: 'You should have put your SL above those two hammers if you wanted to protect profits, Romanian playboy, not exit where you did. And where is your support and resistance on your Strat Shadow charts?'