GJ continues to haunt me…it formed a nice Morning Star at the 50-618 fib level which appeared to have been the confirmed Right Tip of the Crown…which I would’ve traded if it wasn’t because I was already on this long trade…and I would’ve lost this trade too since my stop needed to be below the low of this MS…I guess my mistake of entering on a break of the wedge/triangle was a saviour after all.
all of this was from my very first missed to enter the bull engulfing candle that broke the inner trend line on the 4h chart…but as we all are, I am learning and improving with every trade
Coming back to this update…the GJ looks now as it is confirming the Right Tip at the 618. Actually, when I think about it, I DO NOT TRADE 382 OR 50 FIBS!! anyway…but my comment above, has to do with the fact that the MS formed between the 50 and the 618 levels, which could’ve been interpreted as a “close enough to the 618 to trade!”… This sort of situations (when the candle formation is close to the 618 or 786 and hasn’t touched it or crossed it) reminds me why it is good to place your stop below the 786 or at least quite below the 618 “just in case” the market decides to have one more go at these levels. Of course, this means that I will have to buy lets units, but at least I won’t lose!..
So now it is possibly forming a new Morning Star. This means the current 4h candle has to close at around 139.66 to make it a textbook morning star.
Now, I would love to add to my current position by moving the stop below this MS but I am still concern that it might still like to hit the 786 to make the Right Tip at this level (which matches the Left Tip level of 139.00
So in summary, I am still monitoring this and I have decided to oNLY ADD to my current position if the Right Tip is formed at the 786.
Lets wait and see…