Inside technicals and chart patterns by 
On shorter term intraday charts the cable was trying to form a floor. Floors (and ceilings) are great because they show you where the decision levels on the charts are.
In this case a floor doesn’t mean a rally it simply means that there will be support…until there isn’t. Floors are buyers and when they step away or are simple overpowered by sellers (resistance).
In a downtrend like the 60 min. cable there is a predisposition to the downside since it is easier to follow the trend than try and pick a bottom. Picking bottoms is basically fighting momentum…
Here I was sweating it out a bit as the initial short was the entry at the bottom like of the Wave just below 1.6400.
Prices rallied to test the resistance and validity of the short when they ran up to the top line of the Wave (green).
Certainly that’s no fun to sit through BUT there is a difference between being in the red on a trade and holding it past when it is valid!
That’s why is is so important to understand why you are getting into a trade and why the entry is valid…without that there is not way of knowing when you should get out and why you should get out.
Stops are easier to follow when there is a plan behind their placement.
Validity dictates when I get out of a trade. Not pips, not dollars. Dollars will dictate IF you should get in the trade in the first place. It’s an entry filter not a risk management tool.
Ok, so just wondering…….how do u decide to use the 60min chart to enter the trade vs. the 180 or some other timeframe where the ‘wave’ appears to sync up with the price action and you still get confirmation from macd?