AUDCAD - short at historical structure
Updated
Trading is all about finding probabilities that give you an edge. A historical support/resistance level is such an edge. If you take a look on the daily chart you will see that the current level has been serving both as support and resistance for numerous times in the past.
Don't you think it's likely that we'll see a reversal here (even if temporary) that we can take advantage of ? This price level, if we stay below, bears will try to repeat the sell opportunity that was successful the previous time, and the ones that were not on board for the previous short will like to try their chances now.
On top of the S/R level, we are at the 0.618 fibonacci retracement of the previous move down and we can see bullish divergence on the RSI.
Personally I will look for an additional confirmation like a reversal candle or a double top, which even raises the chances of being right.
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Don't you think it's likely that we'll see a reversal here (even if temporary) that we can take advantage of ? This price level, if we stay below, bears will try to repeat the sell opportunity that was successful the previous time, and the ones that were not on board for the previous short will like to try their chances now.
On top of the S/R level, we are at the 0.618 fibonacci retracement of the previous move down and we can see bullish divergence on the RSI.
Personally I will look for an additional confirmation like a reversal candle or a double top, which even raises the chances of being right.
What do YOU think ?
Agree with this idea ? Thanks for giving me the thumbs up by clicking the like button.
Have another view, have questions, comments ? Feel free to share it below !
More ideas like this ? Click the follow button to keep updated when I publish new ideas or update already published ones.
Trade active
Shorted 0.9840Trade closed: stop reached
Good analysis, followed the plan, but did not work out. Just one of those losing trades, which is part of trading.
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