Woke up feeling great, knowing that I'm about to continue my grind, and given today is Monday I wasn't expecting a busy day.As I was analysing the EURUSD chart, I saw three potential patterns forming, pattern ( in the dashed lines), ( Blue-violet colour ) and ( Sea-blue colour ). Knowing trading is about probabilities, I asked myself what if all these trades turns out as losers? I'm I willing to eat all these losers? Which one should I take? There goes the Pattern Trader Dilemma.
After few minutes of analysis, I decided to take take the . I'm expecting a deeper CD leg of the which will increase the risk : reward on this trade. WHY THE GARTLEY? Although the would be valid, in order to be safe, my stops will have to be at the same place as the , hence the pay-off on this trade would not be favourable. But I was interested in the because it came into the zone I would be interested in taking a short position. And given its deeper CD leg, the pay-off would be great.
What about the Bat? Usually, I would go for the Bat, however, since it's not in the zone, I am prepared to eat the loss on this and on the Bat, if they are losers.