The situation that I spotted:
- Ascending Channel (yellow line)
- S&R (red line)
- Double Top
- Tweezer Tops (blue box)
This was on the 4H chart. You can see the double top from the beginning of the red rectangle. I’ve marked the tweezer tops with the blue box.
So I figured this was an easy short trade, all the signs are pointing to it. But with this ascending channel I thought of looking at the weekly chart and saw that my short may not work out as it may instead breakout.
I decided to do a stop and reverse trade.
Set my stop loss at the top of the candle high of the first tweezer top, basing it off the rectangle S&R instead of the ascending channel. Also set that as my entry order for the long trade. My thought was that, if it goes above this, then it’ll break out for sure. Set my SL on the second trade at the low of the second tweezer top - because if it hit that then obviously, it didn’t break out.
Ended up losing on both trades. I shouldn’t have placed that second trade and really just used the ascending channel. Or maybe used wider stops also.
I don’t know. What do you all think?