Mr. Hyde wrote:Mr. Hyde wrote:So the basic trade idea is just equal size candles or railroad tracks at a S/R area. That area is also one of my favorite trade idea's, the rectangle. Just like triangles it gives you a measured move preceding the formation which is usable as a target. Also the target is at a 1hr and 4h "dragon line" basically just a S/R area at the close instead of the extreme. The fact you have the 1hr and 4hr is at the same level just adds to the confluence. I will now look for a reason to short (candlestick pattern) or look for a long with a close over that line and hopefully a rejection of it.
Oh the trade was worth 6-8 points depending on your exit and the sl was 4 points which put it underneath the equal size candles which would be the correct way to play it. The more greedy way would to put it at the 50% or just a little beyond of the trigger candle which would have been 2-3 points. Still the trade at the very min would have offered a 2 to 1 RR and there was a add on possible to.
4hr chart gives a nice lil added confirmation of a possible short.
That would have been a nice rebound, right enough, then a close over - retest - enter move long.
Now it's possibly heading for another bite, though it may take a punch through to the larger zone. We'll see.