The initial visualization was a little off today but leaving the minor resistance zone at 1162.00 as opposed to moving it up to 1169.00 allowed my to clearly visualize the continuations and higher lows on the way up as extension pullbacks holding and continuing.
I did not attack the inside support that developed just after the open at 1156.75 but hit the shallow pull back after 1162.00 extended.
This is an interesting topic to cover. The 1162.00 minor resistance zone was more of a support zone after it got extended than a resistance zone. In fact, the price did not even pause there but the liquidity was virtually the same as at a resistance area.
The shallow pull back was problematic and right on the verge of being unacceptable within my plan. I wrote in the prep commentary that I needed to hit a pull back after an extension hold of 1162.00 but this was very shallow.
I hit it because it "looked" right and that is the wrong reason. It does not matter how a pattern "looks". Sometimes the right trade is to trade what you see and sometimes the right trade is to trade what you do not see.
I ended up taking some heat due to the shallow pull back. I left the risk on the table because that is my plan. If I put myself out of position but the trade premise is good, I take the risk from now on.
Today's trade could have ended in a 5 or 6 point stop. The probability was that my read was good though.
It is worth noting that I had two entries at better prices, less risk, and more confirmation had I been patient. I was impatient for the right reasons and will continue to battle with early entries vs. confirmation and less risk.
The difference this time around will be that I will stick with my out of position entries so my money is only taken when I am wrong and not when I am right but get pushed out of the position.
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