As it turns out, patience pays ... . If you were patient enough to wait for price's challenge of the downward sloping yellow channel's upper bound here (I thought that presented the best risk reward } and took an appropriately scaled short entry, kudos to you (it happens to also be coincident with last week's high, so there's a confluence of resistance, both trending and horizontal here).
If you were also able to move your stop loss to break even (it would be very tight, I know, but break even always beats a loser), you get extra points.
Well, what to do now? Assuming that you moved your SL to break even, well, sit back, and enjoy the ride. If you get stopped out because this little bugger wants to carry on with its bullish continuation dance, step back and reassess, since it will in all likelihood mean that this downward sloping channel is broken and that it's going, for example, to start "reobeying" the upward sloping purple one and that price will take awhile to sort itself out, particularly since we're in an area that represents a confluence of long (red), medium (purple), and short-term (yellow) channels and resistances that may result in market choppiness, indecisional sideways "boxy" action, and various other muddled market behaviors ... .
And, if we do get continuation to the downside, consider either (a) taking profit at the lower bound of the upward sloping purple channel; (b) peeling off a piece of your position there; or, at the very least, (c) moving your SL to a greater "in profit" point, such as that intermediate SL swing high (assuming we get past that point).
You can naturally consider scaling in additional contracts, shares, etc., but I would only do so if we get continuation (for example, through that "Peel Off" point indicated on the chart) and then only if you can move the SL for the value of the net position created by the addition to a profitable price point (See Fingertrap Method Post, below).
If you were also able to move your stop loss to break even (it would be very tight, I know, but break even always beats a loser), you get extra points.
Well, what to do now? Assuming that you moved your SL to break even, well, sit back, and enjoy the ride. If you get stopped out because this little bugger wants to carry on with its bullish continuation dance, step back and reassess, since it will in all likelihood mean that this downward sloping channel is broken and that it's going, for example, to start "reobeying" the upward sloping purple one and that price will take awhile to sort itself out, particularly since we're in an area that represents a confluence of long (red), medium (purple), and short-term (yellow) channels and resistances that may result in market choppiness, indecisional sideways "boxy" action, and various other muddled market behaviors ... .
And, if we do get continuation to the downside, consider either (a) taking profit at the lower bound of the upward sloping purple channel; (b) peeling off a piece of your position there; or, at the very least, (c) moving your SL to a greater "in profit" point, such as that intermediate SL swing high (assuming we get past that point).
You can naturally consider scaling in additional contracts, shares, etc., but I would only do so if we get continuation (for example, through that "Peel Off" point indicated on the chart) and then only if you can move the SL for the value of the net position created by the addition to a profitable price point (See Fingertrap Method Post, below).
