Wanted to sell one pip below Candle A (Chart 1) but price sold off rapidly while I was entering my order. So had to give it a miss.
This trade is not an exactly ideal trade. Although most signal point to a bearish reversal, the prior uptrend had been strong and the bullish trendline has yet to be breached (green trendline in Chart 1). I intended to enter half my normal size and quickly move my stop loss to breakeven once price touch the lower (bullish) trendline. However, in the midst of my hesitation, price moved away from me and I have no intention to play catch up with it. Nonetheless, I’m interested in how this trade would turn out…
Chart 1: USDCHF 23 Apr (H1)
Reason for entering trade:
- Price reached upper (red) trendline and reversed. Note that the red trendline is a long term bearish trendline (refer to the yearly chart below).
- Fib 38.2
- Candle A shows that bulls lack strength and/or conviction.
Contradictory Signal:
- Short term trend is bullish and the uptrend has yet to be breached.
Chart 2: USDCHF 23 Apr (Daily)
