10,000 Ft View – 4 Hr Chart
There are a couple of things I like about this trade set-up.
Price is within weekly and daily zones. In addition, price formed a “M” pattern on the daily chart.
NOTE: a “M” pattern is just a double top signaling a trend reversal pattern.
Thus, I was looking for a pull back before the continuation down. I wasn’t in love with the zone, even drilled down to a 1 hr chart to evaluate the zone. But I took the trade based on all the other factors discussed.
However, I was stopped out of the trade several hours later even with a bit more cushion on the stop loss.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.