Why was this trade so good looking but didn't play out?
For
-Head and Shoulders
-4H Resistance
- 38.2 fib
We had 3 confluences but the trade didn't play out, this can't be ruled out to it just not playing ut. That should be the very last resort after doing some proper digging.
Answer:
A Head and Shoulders usually lines up with the right shoulder also being the 618 fib but it didn't here. Really the 38.2 fib isn't a deep retracement at all so it is more likely to be broken.
Especially with this not being a clear Daily level using the 'lava' Zone analogy and only a 4H level the chances were especially higher for it to be broken as the 38.2 is weak anyway especially on this short swing.
Lesson to take away from this, count and validate the strength of zone including timeframe drawn & time its held and the right shoulder of a H&S should be lining up with the 618 fib as otherwise the shoulders are too small compared to spike of head.
For
-Head and Shoulders
-4H Resistance
- 38.2 fib
We had 3 confluences but the trade didn't play out, this can't be ruled out to it just not playing ut. That should be the very last resort after doing some proper digging.
Answer:
A Head and Shoulders usually lines up with the right shoulder also being the 618 fib but it didn't here. Really the 38.2 fib isn't a deep retracement at all so it is more likely to be broken.
Especially with this not being a clear Daily level using the 'lava' Zone analogy and only a 4H level the chances were especially higher for it to be broken as the 38.2 is weak anyway especially on this short swing.
Lesson to take away from this, count and validate the strength of zone including timeframe drawn & time its held and the right shoulder of a H&S should be lining up with the 618 fib as otherwise the shoulders are too small compared to spike of head.