Why I don't set hard entries on pattern trading
It seemed this beautiful Cypher pattern would take a bit more time to complete until the RBNZ rate decision. The pip train blew past what would be an entry at the .786 (1.0947).
The stop at X plus 10 pips is still safe but the trade would be down about 26 pips and at one time, twice that.
With a little more push the stop would have been hit.
Although the bc leg extention is confluent with the .786 it is only a few more pips to the last high of the pair.
Considering resistance and support along with completed pattern entries along with fib retracements may make for a less risky trade, expecially when fundamentals cause a great deal of volitility.
Also consider two successive days of advancing and falling back. I don't believe the decision of direction has yet been made.
I am still apt to short this pair, but not before the chart tells me to do so and I believe it has not yet spoken.
I firmly believe the entire PRZ should be hit or a reversal should be evident.
Submitted with respect to everone's trading plan.
The stop at X plus 10 pips is still safe but the trade would be down about 26 pips and at one time, twice that.
With a little more push the stop would have been hit.
Although the bc leg extention is confluent with the .786 it is only a few more pips to the last high of the pair.
Considering resistance and support along with completed pattern entries along with fib retracements may make for a less risky trade, expecially when fundamentals cause a great deal of volitility.
Also consider two successive days of advancing and falling back. I don't believe the decision of direction has yet been made.
I am still apt to short this pair, but not before the chart tells me to do so and I believe it has not yet spoken.
I firmly believe the entire PRZ should be hit or a reversal should be evident.
Submitted with respect to everone's trading plan.