This was a mini C&H in the 5min chart. I liked the volume contraction, the "perfect" C&H shape, and the 3:1 ROI. I entered at 27.70 with a protective stop at 27.60 (the bottom of the handle) and my goal was $28.00 which is a round number and a daily PP. Although I would normally have take a partial there, I ended up exiting the full position at $27.99 because I could not continue watching the market due to other obligations.
2 comments:
Nice trade anarco.
Other than your prior obligation, what made your target $28.00 instead of the usually 100% fib extension for C&H patterns?
$27.98 is the 50% fib ext when you draw the fib from the bottom to the top of the cup.
Under normal circumstances I would have taken a partial at $28.00 (instead of exiting the full position) because of 28 being a round number and the 50% fib ext. Also the R1 line (pink) is very close to the $28 mark. So all these factors together make me believe that $28 is an important area in the chart and that price may reverse at that point, which means it is a very good time to book some profits.
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