This was just a really bad trade. I thought i was shorting a Gap 2 above the EMA, which was a valid reason, but i failed to realize despite having my trend channel line drawn, that there was a break of the bear trend channel line. Usually this should alert me of a possible test (or perhaps even break) of the opposite side of the channel (bear TL). Even worse, i calculated my risk wrongly and ended up risking more than i was comfortable with.. This led to further mismanagement and a lot of hoping. I could have closed the trade when the market formed a DB and a H2 long signal, but i was no longer objective and continued to hold on only to watch my stop get hit.
Here are a few setups that were reasonably good.
Bar 1 was a L2 short (2 bars earlier was the L1), an EMA test, trend channel line test ( a parallel could be drawn mirroring the line drawn below the last swing low) and a breakout pullback short (break below an earlier range)
Bar 2 was a Double top and set up a L2 short at the EMA and trend channel line. Especially great when market is trending below the EMA throughout the last 40 bars.
Bar 3 was an Outside down bar. Here the context for a short was especially good given the break of the bear TCL (line below bars) followed by the break of the opposite side (line above bars).
The ODB was also a 3 push pullback although this was not so obvious.
Bar 4 setup a L2 short following the 5 bar bear spike from bar 3. It also formed the right shoulder of a head and shoulders pattern.
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