Said structure, which is shaping into a flat type pattern, could present a good sell opportunity for those who aren't yet in the trade from previous sell setups, once complete. However, certain pairs, like this one for instance, have a more frequent tendency to interrupt the correction ahead of what expected. In this specific case, what we would expect to correct as a normal flat, could in reality turn into a contracting flat without any notice, giving us a hard time to get into the sell properly. Of course, if one is trading the , this would not be an issue. However, for the majority of traders, who are trading on the 4hr or 60min timeframes, this can be particularly challenging.
As a trading strategy, in these cases, one could watch price action closely and eventually open a smaller position than normal: if the flat turns out to be a regular flat instead of a contracting flat, you can add to the position later. If, instead, the flat was indeed a contracting one, at least you would not have missed the trade. Of course, in said strategy, one should be very well covered in order to have total flexibility in terms of stop positioning.
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Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
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