Last month was hitting on Hang Seng and then got out before a V bounced initiated by a bullish kicker.
Price is now at the previous bearish abandoned baby and seems to be setting up a
1234 with 2 months WR pending. It is either this or a ‘W’ bottoming chart pattern pending completion. Either way.
But now it seems to confluence with global risk-off mood. Will be waiting for the WR first, preferably with a bearish engulfing.
Price has completed a bearish expansion day below 2 months high. The color change from yellow to purple also suggests the initial bullish euphoria in breaking a key 2 months high has now been undone by an equally strong bearish expansion day. Such a sharp reversal suggests that very likely these levels are seen as resistance and hence I will be using that as a hard stop.
On retracement towards a previous 2 days low which have been crushed, I shorted immediately, as i believe that the big picture have already suggested that a strong bull trap has already happened.
Trade outcome : +800 , +700 , +500
Eventually I chose not to stick with the TP level as shown. I modified the TP level to fib6 ,
and the last pos was protective SL after a bullish day up. I do not have any issues with the exit.
However, this is clearly a trade which has been too comfortable for me. In fact, i felt a strange sense of calmness during this trade. I feel that this is not good as it means I am not staking enough although this calmness was due to being confident on the trade. If so,
then I must look to hit HARD!
Playing small or not big enough does not serve my long-term goals. Perhaps I have not done up the A trade checklist to affirm my belief in getting uncomfortably big for this trade.
I conclude this trade by reflecting on :
The need to hit big on A setup.
Risk not taken on strong edge is a risk itself.