its ok to revise your pattern bundaries
Its ok to revise your pattern boundaries as the chart action provides new data. As you can see I was stopped on this trade in a bulltrap. I have marked my original upper wedge boundary and my revised boundary. I always chart based on best fit. I consider things like number and strength of touchpoints with the line among other things. In this case I choose to view the price action on 3/24 where we break above the original upper boundary, the activity was very weak. I choose to connect 3 points on my boundary rather than the two if you look at the 3/24 price action as the upper boundary point. Now that their was a break of my trendline that allows me to connect it to the 3/24 high to reconstruct the new upper boundary to my wedge. As you can see a long position taken at ~7120 quicky becomes a loser and get stopped at ~6900 as a loser. This initial entry was small with a double down entry to be executed above 7201 that was not filled. -3% on this trade, this was the bulltrap.
Happy trading, stay agnostic.
Happy trading, stay agnostic.
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