That is the question. I noticed this bear harami formation yesterday but since the market just closed i did not do much about it. Now what i have to think about over the weekend is what to do with this. With a stop just over the 3 level one could place a rr 1:2 trade short going to 4.. But it isn't all that simple imo
. Because this pair has been going flat for a long time and i wonder if trading it here is the best move currently. While i did go long at 4 with a stop at 5, that trade is now locked in simply because of the recent harami pattern. Further more i also went short at 2 at the time of that pin penetrating the level, there it confirmed to me the resistance/pullback level held. Also at B i went short because, like 2, this engulfing
pattern reinforced the 2 level.
Now .. with all that out of the way the thing i ask myself, do i really want to go short in the middle of all this?