Disliked{quote} This setup was not a Quad pattern. Note that entries may be taken that are Quad patterns or MML or a combination of both. The XAUEUR short was an MML setup attempting to get into the pair from near the 8/8 MML level and trade it down to the 4/8 MML zone. Please refer to the screenshot for a general guide as to the technical considerations. {image} 1. Resistance zone; 2. 8/8 MML; 3. Harmonic 1 to 1 completion near entry level; 4. Stops just above the 127.2 Fib Expansion level (since price does not usually reverse on a dime, it takes time...Ignored
After Weekly close what do we observe ?
1. Price pushed up to just above the 127.2 exhaustion zone and then made a hasty retreat to the downside on the same D1 bar;
2. Same volume as 1st entry was applied to the higher priced Sell Stop which has now triggered and progressed well;
3. If price pulls against you do not be tempted to apply higher lot position (since the market has already started to show that you might be wrong);
4. If price moves in your favored direction then you might be right and therefore increasing volume carefully on consecutive entries is ok;
5. If price continues to drop we can expect price to reach a 61.8 Fib pullback of the whole AD move;
6. However, obstacles litter the chart so we need to manage the trade as price unfolds and starts to reveal more about its intentions; and
7. Continue to manage the risk, protect capital and look for opportunities to accelerate account growth in a reasonable and realistic manner.
Please note that we are not close to being out of trouble just yet and need to keep monitoring this setup especially on market commencement next week when a gapping issue is always possible.
You will notice perhaps (if trade entry details were viewed) that my initial stops were well placed at 175.50 and did not require any adjustment to avoid a stop out as price moved higher up the chart and against my position.
However, being the end of the week and not yet completely out of trouble I decided to push the stops out to the +2/8 MML price line to give my entries just a little more breathing space should a non-favorable weekend gap occur.
All well within risk tolerance levels.
Masterrmind.............
Master your Mind then Master your Trades
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