Shared by:
ToqueX
Grade=D
The setup: buy the dip
The result: I look now and don't really see this as a "buy the dip" situation, but as a bear flag. I guess I was looking for continuation for a bounce from the end of the previous day after a deep pullback and to aim for 11.00. If I had a short bias here, it would have been a lot easier to trade.
The lesson: I need to sharpen my ability to correctly identify the direction of the momentum and establish a sense of the probabilities depending on how things set up. For me, bear flags often look like pullbacks. I know there are differences in their appearance a lot of the time, but other times they are hard to distinguish (even for great traders maybe?). But if you can't tell what it is, then the probability isn't on your side and it is probably best to stand aside and not take the trade.
Execution detail:
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