Now you see why I got out fast and more importantly STAYED OUT! Must always follow price action and not just enter in to trades blindly just because a pattern completes! You also see the importance of following your trading plan in entering trades. My trading plan does not allow me to get into trades that have less than a 2:1 R;R. In the case of that last trade, If I had entered because of the , the R;R would've been even less than 1:1! I took the trade only because there was a POTENTIAL at the time but see even now, I learn from my mistakes. Looking back, it was a mistake to have even taken that trade because it's not in my trading plan to take trades on the 15M TF. So I broke 2 rules of my trading plan in taking that trade. The result? A -15 pip totally unnecessary loss! Granted it was only 15 pip BUT the point is that I BROKE MY OWN RULES which should NEVER do!
Anyhow, I am now taking this trade on the completed since prices are still within the PRZ of that completed . But the difference is that now, the R:R on this trade is 5:1. So now well within my trading plan rules. Alos, my wave count has this as the possible ending of wave 1. Now, there still could be some more downside to go but I think it is limited and now the reward is well worth the risk.
MY TRADE PLAN
I am taking a LONG position in this pair now and targeting at least the TP1. But I am looking for prices to retest the lower TL of the former expanding triangle that sent prices down. Keep in mind that the profit targets can change depending on where the wave 1 actually ends as the current low may not be the bottom of this wave down. I will adjust my targets accordingly if needed.
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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