At this point, we're seeing the market going mostly sideways for about 8 days. While at the same time, the indicator flips to full 100% bullish mode. Looking at pivot statistics and previous lows, it seemed like a favorable trade would be to enter into a long position around 4175,00. That's quite a significant intraday pullback, but statistics tell us that's not unreasonable to expect.
And indeed, our open buy limit was hit almost perfectly with only getting 0,25 lower as you can see on the chart. But then, a few candles later, the market went even lower. But not long after that, a nice recovery set in, only to give back some of it at the end of the session.
Now, at this point, a crucial dilemma came up. The indicators were still in a bullish mode for the next day, anticipating a higher close. But on the other hand, this day ended lower on the day which is bearish for pivot statistics. The combination of these two was we could expect a very significant intraday pullback and then recovery. Also looking at where our current stop loss was sitting (4180,00) it would be best to close the current position at 4190,00 and try to reopen it at a lower price.
As you can see from the chart, closing the position was a good decision, or otherwise, the stop loss would have been hit overnight. But what was unfortunate, we didn't get a chance to get back in because the intraday pullback already happened overnight and stopped at 4177,00. All in all, an ok trade giving us a nearly full one R return compared to our stop loss.