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according to picture, i have 2 questions
1. am I taking resonable trade? how would experienced trader trade in the day like this?
2. day like this doesn't ussally happens right? (go down - strongly bull - reverse down)
this is open of asian session by the way (4.00=3pm pst)
The bar you're exiting your long, is the FT bar of a HL/LL/DB MTR buy setup. DB after a wedge, reasonable buying pressure in the leg up before the MTR buy, I don't know about experienced traders, I know I'll stay long. It is a pretty good buy setup.
The bear bar following the 3 bull bars after the MTR buy setup swing is a failed BO of the major high from where the wedge selloff started. If I don't short below that bear bar which is following 3 strong bull bars, I'll short after seeing the FT bar for sure. If not, then I'll wait for the EMA breakout on the downside and then decide on going short.
2. day like this doesn't ussally happens right? (go down - strongly bull - reverse down)
Different markets exhibit different forms of crazy, or at least that's how it appears to beggining traders. Once you start to identify the PA patterns, it becomes easy to manage these 'crazy' moves as well.
thank you for your answer. seems like I exit my long too early. that 2 big bear bars and long upper tail doji make me worry.
You exited your long a bit late - so much so that another long setup had already formed and you exited your long on the bar that triggered that long trade(the MTR buy setup).
This is understandable, mistakes happen when you're starting out. Make sure you're either not trading real money or if you are, make sure you trade so small that maybe even 1000 consecutive loss trades don't ruin you(1000 is an arbitrary number, not based on some logic). My point is, make sure that you're trading based on sound understanding and you're not guessing what the market is doing.
You need to understand what PA patterns negate your setups and what doesn't. That comes with rigorous training. Put in the work and it'll pay off.