Technically, I am in the middle of writing up the zone reversal strategy, so I shouldn’t really be taking trades on this pair at this stage. However I spotted a very solid 1-2-3 pattern on the 15M chart, which I decided to short. In addition the pair is also in a S2S environment, with price rallying strongly and then having two candles showing bearish momentum, which comprises a valid setup.
Things speaking against a trade:
1. The strategy for zone-reversals is no yet solidly defined.
2. I traded on the basis of the big red candle that broke out of the consolidation zone and shorted at 102.295, after price had retraced a little. In other words, it gave me a better entry. However I sold into bullish momentum, when really I should have waited a bit longer, basically until I had a further bearish candle on the 15M chart.
3. In terms of S2S, I am trading two weak (according to the STAM matrix) currencies against each other.