Exposure taken on too early.
Trading under support for longer period of time was need in order to go for a short position; see Alpha 17-26 dec22
"over - under - over" support setup.
1) scenario invalidation level of short. stop loss
a) regaining the support 1jan23
b) 5.4 above trading range of which it broke down.
2) more confirmation of short was needed: forecasted scenario 6jan trajectory.
3) shorting 5.6 was valid entry point although price regaining 5.4 was telling to get out or put stop at BE.
Trading under support for longer period of time was need in order to go for a short position; see Alpha 17-26 dec22
"over - under - over" support setup.
1) scenario invalidation level of short. stop loss
a) regaining the support 1jan23
b) 5.4 above trading range of which it broke down.
2) more confirmation of short was needed: forecasted scenario 6jan trajectory.
3) shorting 5.6 was valid entry point although price regaining 5.4 was telling to get out or put stop at BE.
