I'll admit right up front I entered this trade too early. Should have waited for a continuation downward, or even better would be a lower close. But this looks so good I couldn't resist.
What I see:
- AB/CD completion and reversal.
- Evening star candlestick pattern.
- Close below 8ema.
- High Stochastics.
- High volume.
For targets, I like the 50% and 61.8% retracements of the yellow range. Starting out with the 61.8% Fibonacci as the target at 682 1/2. But the actual target will shade it a bit to 683 to account for Bid/Ask spread and slippage.
Placing the Stop just above the 786 1/2 swing high.
Using the YW mini contract ($10/pt) rather than the ZW full contract ($50/pt) to control risk since I'm entering too early.
If it looks like a good idea, I might add another contract this week with the 50% Fibonacci as the target.
Summary:
Entry: 748 on 8/17/21 at 14:17 ET.
Stop: 787
Target: 683
Risk: 748 - 787 = -39 * $10/pt = $390.
Reward: 748 - 683 = 65 * $10/pt = $650.
R:R = 650/390 = 1.7:1 not great but acceptable.
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