Looking to take a short in EURUSD if the following scenario
Requirements: 1. Downbreak to the orange line (S/R level 1) 2. I want to see an open/close of a 15min candles below it 3. Price moves up again to Sell area 1
S-L (Stop-Loss): Above the little swing generated when Sell area 1 acted briefly as support Target: For me the next bigger support level (in this timeframe)
Consider: This trade is based on the 15min chart - therefor levels have less importance than on HTF (Higher-Time-Frame).
Good luck
Disclaimer: - This information does not constitute as financial advice and is only for educational purposes. I am not your financial advisor. - You trade entirely at your own risk - Make your own research - Finance and trading is evil, capitalism is bad, duh ;)
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S/R level 1 taken out. On a retest of Sell area 1 trade will be opened.
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Currently debating if the sell signal was given by this pattern.
After Sell area 1 was engulfed and price fell under it it generated a series of minor lower lows. While i certainly would short again if price approaches Sell area 1 again, i would adjust my S-L for now and would want to watch how price reacts to it.
Trade active
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Order filled. However because of the strong reaction to the previous engulf i adjusted the Stop-Loss a bit higher as i can imagine price taking out the high of this engulf before going down.
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Seems like it was the right the decision to adjust the Stop-Loss (as i mentioned in the comment above)
Trade closed: stop reached
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In my second update to this idea: I mentioned that the originally breakdown with the lower swings was the enter signal.
Should have waited for another engulf with breakdown or lower swings under the resistance before entering.