1. After a long ascent without correction 2. Absolutely beautiful and classic pattern, which arrived just in time. 3. At the top of the pattern - an Engulfing candle with high volume and on a daily resistance line.
The target of the pattern is indeed lower than where I marked, but I marked at least the nearest support, which is both the 38 Fibonacci retracement, and the size of the Engulfing candle.
* It is important to remember that the general trend is long! Therefore there is an opportunity here, but - carefully.
Two additional points regarding entry into trading: A. While it looks good for a drop already, manipulation in such a situation is expected. That's why I marked a zigzag on the expected way down (and it seems to me that the price will still go up to complete the right "shoulder", but not necessary).
B. Regarding risk management: If I had a large enough account, I would just short it and forget about it. The stop is at a ratio of 1.5 to profit at this point. But with a small account - I take small moves - from the edges (!): 1. Inversion in the right shoulder. 2. Reversal from the daily resistance (marked in red). 3. If it breaks the pattern to continue down - I will not take a reversal from the support (green) but wait for another manipulation - then short again.
**And again, since the general trend is long, I think it's wiser to take short-term deals.
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