MARKET PHASE OANDA:AUDCAD is in a long term downtrend (daily) with a short term corrective structure that has been taking place (4 hour).
AREA OF VALUE Price continued to break new highs within this corrective structure. Eventually, price reached an area where sellers stepped in, resulting in a buildup of liquidity (buy stops, longs, short stop losses) above the corrective structure swing highs. Price violently moved up to trigger the buy stops (liquidity) to pair against the sell orders needed to take price down. Price has already started it's initial move down, the velocity of the downward move caused a gap in price around 0.89169. Price retraced to this level, triggering our entry and has continued downwards.
TRADE I will be entering short on OANDA:AUDCAD with the following parameters:
Sell Limit: 0.89169 Stop Loss: 0.89239 Take Profit: 0.88889