I don't always time these so well, but this one worked out to be a really nice entry.
So let's check it out and discuss what I'm thinking when faced with a really long extended grinding "will it ever end" pullback.
First the higher timeframe to get some context…
And now the trading timeframe…
Let's zoom in a little to see the extended pullback…
These can be really tough to time an entry. Personally, I hate this type of price sequence.
But in this session I got it just right (well… the entry anyway!).
So let's look peek inside the price action via the lower timeframe to see "what I'm seeing" and to discuss "what I'm thinking".
Entry was achieved via the second scenario – a break of the reverse (lower) trendline which failed to continue lower.
It wasn't a perfect example. I'd ideally like the break to stretch further and to allow room for 1:1 on a snap back to the mean.
Instead the market offered a nice volatility contraction. Too be honest… that's probably even better than what I was hoping for. There was no way I was going to miss this entry! 🙂
And the outcome…
So we didn't catch a major outlier runner with P2. Still… I'm pretty pleased with the entry!
Trade over… confirm flat… clear my mind… focus!
Ready for the next trade!