This was interesting PA: the market played between the monthly pivot and the daily pivot for the first 15 minutes and then broke out. There were a few different setups I could have used to enter the trade:
- Imp/Corr structure
- Reverse broken triangle (R-B-T)
- Rule of 3: 169, daily pivot and BNR
Clearly, when I see confluence like this, it means that the trade has a high probability of success. In this case, the trade managed 3:1 so gave me 1R, but the point is that it was a very safe and easy entry.
I thought I had missed the trade when it first broke through the BNR, but I waited for a retest and shorted there. This was a much better entry as the breaking was fast and the market retraced back up to 12101, whch would have easily taken me out of the trade if I had jumped on the big red bar.