D1 - Primary
In the case of the primary timeframe, the best fit in this case for the Bearish Shark Pattern was a 2.24 AB projection with the 0.886 0B projection for the big bearish pattern.
Following the establishment of the Terminal Price Bar, it took an additional 2 price bars before the price stablised and pointed to a possible reversal.
Following the price stabilization, the RSI also exit from the overbought region (impulsive RSI structure) which gave further confirmation of the setup.
W1 -Distal
Going a timeframe up, the price stalled at the 0.786 retracement from the previous high of 1.06564. In my view, the 1.06564 region would be a resistance which I will want to look out for, but with the fibonacci retracement level projected, the 0.786 seems to be a key level since it coincided with the completion of the Bearish Shark Pattern.
H4 - Proximate
In the case of the proximate timeframe, there was a window for the trade to be triggered within the PRZ in this case.
The following signals validated a trade execution:
- A Bearish Harami (Candlestick pattern), which was an early indication of price stabilization at a resistance, in this case the upper limits of the PRZ.
- A rising trendline violation which signalled a trend change.
- A Dark Cloud Cover which would have been my entry signal in this case after the trendline break.
A thing to note, it has been noted that in many cases, following a trendline violation, the price action will usually retrace before asserting the intended move and thus, I have come to learn that there are opportunities and that patience is key when it comes to execution.
Update (08 Jun 12)
Following my post of the possible short on USD/CAD on a Bearish Shark Pattern, for learning purpose, apparently, there was a violation of the accelerated falling trendline which prompted closing of partial or even the whole trade. Refer to the attached chart.
Some Thoughts...
I have always wanted to be successful in trading that I have invested a lot of time in learning to trade and gone through so many books just to learn more about trading. I would say that my hunger in acquiring knowledge was insatiable. After so long, the Harmonic Trading Approach by Scott, has always been the best but why do I still see a sub-par performance?
After some reflections and being brutally honest with myself, I have come up with a few factors:
Even with the best systems, trading will never work out if the psychological aspect of mine is not in the right state.
I was anxious to accumulate my wealth, failing to realise that trading will take time and experience is needed, as in the screen time which successful traders have taken tonnes and tonnes of hours to learn to trade and in turn become successful later.
Focus, which was something I lacked during the past years as I was going through challenging times.
As such, after deciding to be brutally honest with myself and also to be open in terms of my thought to others who read my blog (which i believe all of us will have certain challenges when it comes to trading), I have decided to reorganise my thoughts to continue my pursuit in my trading with the Harmonic Trading Approach and come out with a new set of beliefs:
I am truly confident that I will succeed in my trading with the Harmonic Trading Approach and no other systems.
As for the psychological aspect, something which I believe that it is one of the most important aspects of trading, I have decided to clear out all the limiting beliefs in my mind and even signed up for a NLP Certification Workshop to improve in this field. Talk about my commitment to success, yes I am definitely committed!
As for the focus aspect, I have decided to focus on the one and only approach, Harmonic Trading!
Wishing all a wonderful trading experience. :)
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