EURCAD 1H Bearish Engulfing Trade - Win

EURCAD 1H

To be honest I'm quite disappointed with the outcome of this trade. In all honesty, my original plan was to just let the trade run as I was very confident it would hit the origin of the first compression. That would have been like 2.5R. I only decided to TP 1/3 at the S/R flip level because of my super hate to lose egoistic personality, it wasn't even a major S/R flip! In this case it worked out well but also revealed that my profit targeting skill is inadequate. I'll touch more on that in a separate post... Well I wouldn't know whether price will fall back down again but there was no way I was going to take my chances with such a strong rebound. We can only take what the market wants to give us regardless of where we think price should logically go. Here I would rather get out with my small profits first and reevaluate.

I want to just briefly describe the merits of this setup. I seriously think it is A+. Fake breakout + PA bar + Compression + Supply zone + BRN + Divergence + Double top, it is hard to beat that. When I was nearly stopped out by the triple top, I told myself this is a setup I would take 100 out of 100 times even if it ended up as a losing trade. When the triple top + pin bar formed, I was like oh man this is it, its like free money. This is something you see only once every few weeks or maybe months, and I'll be totally shocked if it failed. I discussed about this setup before here and it is one of my favorite setups. Shorting the triple top pin would have resulted in a better RR trade than mine, taking full profits at the S/R flip level would have resulted in a 1+R trade. This chart really demonstrates the potency of this setup.