We have been watching the 5-year-high area on AUDCAD for some time, but this trade is an important example of why a watchlist is not a prediction.
On August 24, we identified this major resistance area and added AUDCAD to our watchlist.
On August 28, price broke and closed above resistance.
The original setup was invalidated.
Order cancelled. No setup. No trade. Off the watchlist.
But that wasn't the end of the story.
The market eventually returned to this area and began giving us NEW VMS 2.0 evidence on the 4H chart.
STRUCTURE: Price was again testing a major area around the 5-year highs following a large impulsive move higher.
REJECTION: Strong rejection developed at the resistance zone, including a bearish engulfing candle.
MOMENTUM: Momentum developed bearish divergence and hooked lower into a bearish downtrend.
VOLUME: 4H volume was approximately 70, with stronger confirmation on the 1H around 90.
This was no longer the August 24 setup.
This was a NEW setup that had to earn the trade on its own.
With Structure, Momentum and Volume aligned, we entered the short on September 7.
The market subsequently made the bearish move and today, September 10, the trade was closed as a VMS 2.0 WIN. ✅
There's an important lesson here:
We don't stay married to an idea.
When the market invalidates a setup, we get out of the way.
If the market later gives us a completely new setup, we evaluate the new evidence and make a new decision.
STRUCTURE → MOMENTUM → VOLUME → EXECUTION
That's VMS 2.0.
We don't predict. We prepare.
Preparation • Execution • Consistency.
On August 24, we identified this major resistance area and added AUDCAD to our watchlist.
On August 28, price broke and closed above resistance.
The original setup was invalidated.
Order cancelled. No setup. No trade. Off the watchlist.
But that wasn't the end of the story.
The market eventually returned to this area and began giving us NEW VMS 2.0 evidence on the 4H chart.
STRUCTURE: Price was again testing a major area around the 5-year highs following a large impulsive move higher.
REJECTION: Strong rejection developed at the resistance zone, including a bearish engulfing candle.
MOMENTUM: Momentum developed bearish divergence and hooked lower into a bearish downtrend.
VOLUME: 4H volume was approximately 70, with stronger confirmation on the 1H around 90.
This was no longer the August 24 setup.
This was a NEW setup that had to earn the trade on its own.
With Structure, Momentum and Volume aligned, we entered the short on September 7.
The market subsequently made the bearish move and today, September 10, the trade was closed as a VMS 2.0 WIN. ✅
There's an important lesson here:
We don't stay married to an idea.
When the market invalidates a setup, we get out of the way.
If the market later gives us a completely new setup, we evaluate the new evidence and make a new decision.
STRUCTURE → MOMENTUM → VOLUME → EXECUTION
That's VMS 2.0.
We don't predict. We prepare.
Preparation • Execution • Consistency.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.