TF: 1 Hour
Buying Price: 58.89
Selling Price: 61.64
It formed a proper Ascending bullish triangle pattern. I entered this trade day before yesterday and it kept growing. At the end of the triangle, I was expecting a breakout since it’s clearly forming a bullish triangle pattern. It went high today and up to 6+%. I kept holding on to it expecting it to go further up in the coming days. Unfortunately, it came down again and formed a shooting star. Had to exit cos I fear that it will continue the uptrend. it kept falling regardless of the clear signs of a bullish ascending triangle.
What went wrong here???
- Should I have held on to it even after the shooting star formation?
- Or is this what we can expect from this specific trade?
I am not much experienced. Hope this isn’t a dumb question.
Trading is always a game of odds, so if it’s a bullish ascending triangle, maybe the probability of the price going high is high but that doesn’t necessarily mean that the outcome will always be positive.
Trading is a game where the outcome is random so it’s better to trade a plan. Say you have a 2:1 Risk Reward ratio, you know when to exit or enter. Since you can’t control what’s happening to the markets atleast you can control your exits.
From psychological perspective say :- if everyone buys when a bullish triangle appears, wouldn’t some others setup a bull trap?
This Ascending triangle pattern has definitely given a breakout on the upside, so the setup is right. However, you need to know that every trade won’t go in your favour no matter what. Have some clear cut rules and trade with the “probabilistic mindset” and not a “certain mindset”.
A certain mindset says “this trade would be right”. A probabilistic mindset says “this trade just gives be higher probability to be successful” and that is all we can do in trading i.e to place higher probability in our favour.
It looks like a retest to me of the important support zone before flying up! Lets see! Fingers crossed!
IT took support off the 50 EMA.