shorted a nice 1234 2 day bull trap but it was not A trade so did not hit big.
With the backdrop of post AUD cash rate n RBA statement, I determined temporary AUD weakness and hence decided to go for audnzd short. It happened to have a nice 1234 pattern.
Initially queued pos at rs , it did not happen. Took advantage of orange box close and entered there.
updated 2017 + 4 hours
Took profit for 27 pips.
Now monitoring to see if IHS h4 will materialize or not. A good guess may be Wed n thur AUD news. A potential 6 day bear trap will serve this right shoulder good chance of succeeding.
D1 chart may explain my interest in 1.0634, an obvious 2008 low sharp spike.
So this is the level which helps me make my decision. If this level can be so significant and solid, then subsequent chart patterns which are based on it, will have a higher chance of succeeding and having their risk defined.
I have just taken profit with +145, +135 , +35 after about 7-10 days of holding. Seldom have I held trades for so long these days but the ihs chart pattern resonated with me so strongly that I kept holding to it until it reached 1.0910.
However, upon retest of 3 times, I believe this is an OK time to exit the trades, since a 1234 with a day 2 WR is on the way to happening.
Still considering shld I be flipping to short after exiting long trades.
Pending news outcome on Wednesdy with both AUD and NZD news , this could be a potential explosive pair shld news be AUD -ve but NZD +ve BOOM!
on the other hand, it could also BOOM! the other way.
overall, I am very happy with this trade because of the overall process:
trade planning, trade execution, trade discipline, trade conviction, and finally good reason for trade exit. i believe I have exited with a fairly good reason: I see a fairly good setup to short; I am still holding on to long position, hence I exit my long positions. Seems logical this way.