I am not yet willing to go with a LONG position for the ride back up the the top TL and what would be the Leg E of the triangle JUST YET. I will need to see this D point become CONFIRMED before I would decide to take the LONG. So what would that confirmation look like for me?
See that "minor sr structure" line I had drawn onto the chart awhile ago? Well, that "minor" sr structure line has had ELEVEN TOUCHES dating back to where I have it originating back in August 10 of this year! So why do I still call it "minor" ? Maybe I need to change it! Regardless of whether it is a minor or MAJOR sr, it has been relevant in the recent and the far past. And it should continue to play a part in the future. In fact, it may play a part here in the very near future. If you see on my chart. IF prices get back up to that zone (remember, just 'coz it's a line here, DOES NOT mean that exact price is the structure! It's a ZONE), then it may reject prices there sending it back down a little back towards the lower TL and then should rise again. IF it does this, then that will establish a possible wave a of the E leg with the retrace back down to the lower TL being a wave b of the leg E. This kind of price action would CONFIRM the D point of the triangle and firmly establish that this is indeed a triangle forming. It will also confirm that prices would go up to fill that E leg.
It is at that point that I would take a LONG position for a ride up the E leg. I'll be watching for this price action..... BTW , if prices do follow the path I just laid out, then it would form a POTENTIAL you see on my chart (green). But that is NOT any kind of pattern right now! It is ONLY A STUDY! It is not to be traded upon in any way, shape or form for now.
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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This is a good lesson as to why it is so very important to watch the PA BEFORE you take action and initiate a trade and not just take a trade just because a pattern had completed. By waiting for confirming PA to go long, I avoided taking a bad trade that would've cost me pips unnecessarily. .
Year-to-date Profits: +5,794 pips.
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