Trading a short countermove before trend up again.
A bit late, but wanted to share a small trade I am in.
Using the D-trendline as resistance, price recently broke the steep upward trendline AND some daily S&R.
I got in without confirm, and took a small retrace but with a big S/L. The next days candle was bad news, but not bad enough to get out of the trade, day after that we get a really nice confirmation candle. Price is heading down, probably towards the W trendline (might hit the horizontal at 91.141 but we're not counting on that.
In retrospect: the 9/4 day candle with very strong retrace and high close, is another sign, price is planning to go upwards again after this countertrend trade we're making here.
Update 22/04:
Price is fighting with our S&R line, and I don't like the look of the previous closes. The trade looks less appealing now, we could opt out now or wait for a candle closing over our S&R line.
Also notice, the longer we stay in the trade, the closer the supporting trendline comes and the less profitable the potential trade gets. This is a downside of countertrendtrading and makes following up on it a lot more important.
Update 28/04:
Still looking for the small break trough 92.419. Still playing the waiting game.
Using the D-trendline as resistance, price recently broke the steep upward trendline AND some daily S&R.
I got in without confirm, and took a small retrace but with a big S/L. The next days candle was bad news, but not bad enough to get out of the trade, day after that we get a really nice confirmation candle. Price is heading down, probably towards the W trendline (might hit the horizontal at 91.141 but we're not counting on that.
In retrospect: the 9/4 day candle with very strong retrace and high close, is another sign, price is planning to go upwards again after this countertrend trade we're making here.
Update 22/04:
Price is fighting with our S&R line, and I don't like the look of the previous closes. The trade looks less appealing now, we could opt out now or wait for a candle closing over our S&R line.
Also notice, the longer we stay in the trade, the closer the supporting trendline comes and the less profitable the potential trade gets. This is a downside of countertrendtrading and makes following up on it a lot more important.
Update 28/04:
Still looking for the small break trough 92.419. Still playing the waiting game.