Here is a note to myself that I want to share of yesterdays trading setup on a bearish ABCD setup. I took this trade because I missed the hourly Cypher pattern that completed 2 days ago. The emotional part of trading is the most difficult part. Yesterday price touched and rejected T2 3 times. My trading plan allows me that when T2 has been hit I may exit the trade according to some rules. Studies shows that after 18hours on a 15min chart most likely a pullback or correction move may follow. I had put this in my trading plan set of rules for exiting a trade. I'm petting myself on the back for letting 10 pips go over almost a 40pip pullback. The plan was to re-enter short on the next setup. The asian session put up a nice double top which made way for a 2.618 trade but unfortunately that never got filled. In the end the market respected the ABCD pattern as price touched all 3 targets.
The question I asked to myself in the past was how can I apply a set of rules when targets has been missed.
The question I asked to myself in the past was how can I apply a set of rules when targets has been missed.