DislikedChrisP,
I am curious, what is the rationale behind waiting for the pullback towards the blue line to initiate entry? s/r? rn? lower time frame price action?Ignored
Here's a bare chart on another 4h close which helps to explain my entry. The 2.0000 level was the key reaction point that we'd indentified from the swings, fib retraces etc, etc. Sometimes if I get the right price action I'll take a position right from here, but if not I wait for more confirmation. We did get an initial Bearish Outside Bar off that level (1st arrow), but the close wasn't low enough to get me interested.
After a few more bars of consolidation we then had a go at retesting that area, and price was again rejected, this time forming a pin bar. With the retracement trendline drawn we had our 1,2,3 formation. Rather than playing a pure break of the pin bar, I wanted price to confirm that it would also break the 2 of our formation. It did that, which gave me more belief that this setup was going to work. Lastly, EURNZD can be a bit choppy at the best of times, so rather than enter there (which would have been perfectly fine), I decided to wait for price to retrace and test the low of the pin bar again. So I place a limit sell at the low of the bar, with my stop set behind it. This also gave me a better R:R
There's no real best way to play these setups though. Price may never have looked back once it broke the lows of the '2' and I would have been left standing at the alter. But that's the way it goes sometimes. One thing I've learned though, is to never chase a trade if I missed seeing it in the first place.
Best,
Chris
Attached Image (click to enlarge)
