GC price action lesson
GC in the past few days provides a good lesson in how to read price action in real time.
See the chart below (I left the original markings on.)
Abrupt price rejection, indicating this may be a failure test, with all its implications. Though we assumed so at the time, “assuming” is not a trade plan. So we waited for more evidence, in the form of upcandles, and for a setup, in the form of a pullback on our timeframe, the 240min.
Two days later, we have the first pullback on the 240min chart, which we were expecting after the Keltner touch. We had our first pullback trade on the 240min for a 1R.
The second pullback trade, targeting the previous high (see charts below with timestamps).
Target hit.
The previous high, our target area.
The rectangle shows the noisy intraday action, but which is just a pullback on the 240min. An example that it pays to trade above the small-chart noise.
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And the details of the execution: