Kept on shorting MER, I had $70 at one time during its range, however I shorted some more at the bottom at 43.80 expecting that to be the breakdown WRONG! I thought it was forming a descending triangle, should have took my cue when it broke the desc. triangle. It then broke thru 44.50 and I cut at 44.65. Had I reversed, I would have net $300 on that reversal trade.
It was a flag pattern and a perfect one at that.
What I did wrong:
I didn’t expect the flag pattern. Didn’t enumerate my scenarios.
What I did right:
I cut my losses. I identified the S/R correctly.