Here's why;
On Tuesday I posted some charts from Monday highlighting some weakness at the highs on EU. It's plain for me to see. The last few days i've been talking to some other traders about higher time frames. I took a look at the daily chart and saw some more potential weakness coming in.
EUR/USD Daily
It's a simple chart, ignore the fibs as they're based on 4h bars. We have some nice high volume coming in towards the right edge, the highest since the end of June in fact. The next two bars are down, there is certainly some weakness in here. This was also backed up by some nice high volume near the highs on the 1hr chart.
So I decided to take a short based on a PnF entry.
EUR/USD 1hr PNF
1. This was the first possible set up, I missed this entry so we'll move on from here.
2. Where the stop would've gone for entry 1.
3. This is the sell entry I took, same set up (triple descending) as the first. Entry at 1.3015
4. Where I put my stop - 1.3095.
The blue column of X after the sell entry is where the market pushed up towards the end of yesterday and is also where I decided to close my trade. Look where it is now. Running along nicely.
You'd swear I learnt nothing about letting the trade run from back testing.
I'm quite annoyed with myself for this one.
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