Jenkins301

AUDCAD correcting with a Trend pattern

Short
FX_IDC:AUDCAD   Australian Dollar/Canadian Dollar
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.
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.

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