So this is still working on the idea that I last posted, I am going to tag it below so if you haven't seen that one, go check it out first and then come back.
I'm going to break this post down by the three different trade options we have, that way it will be easy to digest.
Keep in mind, the goal is to show how there are multiple ways of tackling a trade and each has its pro's and con's. option3 has almost double the risk that option 1 has, but it also has slightly less probability of being stopped out, so there's no BEST way, just YOUR way :)
So if we remember what we last posted, we had our bias from and trading timeframe confirmation with the Lower Low Lower Close (Highlighted in the red ellipse) and we were looking for a place to get in short. We narrowed that area down to a level of major resistance and laid out a clear IF/THEN sequence for taking the trade. The circumstances did NOT meet so we did not take the trade. Instead price broke above that High and came back down to test it again as support(crazy right.. how resistance becomes support :p ) and now the question begs, am i still getting short? Heck yeah, I just have to wait for the market to give me my confirmation. Fortunately for me, I have a degree in harmonics (not really, but i meant to certify my bad ass"ness") and I found a , The , and best of all, its a good looking pattern. So this gives me the perfect opportunity to Short with Minimal Risk. So now to the meat of it, the first option would be taking the traditionally with your targets at the fib levels. (boring.. but if your habit building, then just follow your rules and stick to traditional)
This would be taking the gartley's first targets and taking extended targets down and previous support. (Great trade, minimal risk, good reward)
This is using the as a Entry Technique to a longer term trade, taking targets down at previous support, and then down at the lower low, lower close. My stops would go above the highs to the left, Unfortunately I can't put my stops above the True Swing high because it would skew the RR too much and make the trade not viable. (This is the one I am going to take)
Like always if you have any questions feel free to comment below