What to do when 2 patterns coincide ?

Hi Traders,

Have you watched the movie the Perfect Storm (starring George Clooney) ? What happens when 2 or 3 storms collides? we will get a massive one rite…. Well… in trading we have these ‘storms’ too.  Here on EURCAD, I see two Harmonic Patterns coincide at the same levels. To make it stronger the level is at a round number 1.5100



EURCAD H4 – Double Pattern happening now by BoonHooi on TradingView.com

 

So what will I do when this happens?  I will still put the charts through my trade analysis. At the moment of posting last evening, there were still warning signs telling me to be cautious and wait for a trigger.  When I woke up this morning…. I am more convinced of a short trade.

 

Note : In trading,  however confident we are on the trade, I believe that we should still not over trade. Yes, I do increase my trade size based on the conviction level but I will never over expose myself.  You should do the same too !!  Be patient, over time we will be profitable when trading with a method with a positive expectancy/outcome.

 

As an additional analysis, I see a well resisted TL on the Oil Charts.  Breaking this TL will imply a stronger CAD. Adding on to the conviction of the EURCAD short.

Cheer everyone…. trade well and trade safe.  Once you get it right, all you need to do is repeat the process and you will see the results

 


 

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