AUDCAD correcting with a Trend pattern
DISCLAIMER: I am by no means anything close to a proffessional. The reason, I post ideas, is to document my trades. There may be no value to you. It might be incorrect analysis. But it certainly helps me sorting my thoughts on charts.
Situation:
AUDCAD seems to start correcting its upwards movements. We can use this opportunity to short AUCAD on 1H. It has already formes a downtrend pattern. We are looking for it to continue.
Plan:
Thus we will try to enter the market at around 0.94881 (red dashed line) with a stoploss at around 0.95278 (green dashed line).
Execution:
We will SHORT AUDCAD and trade the downtrend. Meaning that we will set our SL to the last lower high.
Situation:
AUDCAD seems to start correcting its upwards movements. We can use this opportunity to short AUCAD on 1H. It has already formes a downtrend pattern. We are looking for it to continue.
Plan:
Thus we will try to enter the market at around 0.94881 (red dashed line) with a stoploss at around 0.95278 (green dashed line).
Execution:
We will SHORT AUDCAD and trade the downtrend. Meaning that we will set our SL to the last lower high.
Trade closed: stop reached:
We got fooled pretty nicely. Our shorting condition was met only to almost right away hit our SL.
Which again proves the importances of SLs.
Which again proves the importances of SLs.