Because of this, and a very good R:R of 3-1, I am taking this quick trade for a possible +60 pips while risking only +22 pips. It could be a very short trade if prices go south from here and I'll drop a fast 20 pips but hey, no risk, no gain!
MY TRADE PLAN
Only looking to snag pips up to the completion of the Gartely and that upper TL. Not holding for a possible longer up move as I am anticipating the triangle. Stops go below the point 4 low of the .
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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Yes, this has NOT YET reached point 5. Not NEVER reached! Will it get there? I don't know. Can it still get there? Certainly. Has the trade been stopped out or the C point of the POTENTIAL bat pattern been violated? No. Is it at the lower TL of the POSSIBLE triangle? Yes. Has it violated that TL AND closed below it? No. Can it? Yes.
So is the trade still working? Yes. Trades are only closed when the stops are broken. And I don't EVER move my stops once set EXCEPT to lock in profits. PATIENCE. Either it will be profitable or it will get stopped out for a small loss. If you are too worried about the possible loss, then you should not be trading. Or you are trading with too large a lot or not enough money. Either way, you shouldn't be in any trade. To be a successful trader, you MUST NOT trade with emotions. With FEAR being the killer!
So the short answer as why you "should not trade" the CD leg IN ITSELF is that the pattern you are trading that CD Leg off of DOESN'T EXIST. So if you are trying to trade harmonics patterns hoping to get that supposedly great success ratio, it ONLY applies to COMPLETED patterns. Not the trading the CD Leg. Remember, just because you can draw a valid harmonic pattern DOES NOT mean that it will be filled.
Hope that answers your question.
May i ask what the underlying reasons for this buy were? My guess would say previous structure support? I'm quite new to trading you see, and have been thinking about this for a few weeks. I do quite well with my harmonic patterns, but never understood why i did not trade the final leg of the pattern