For this analysis we will be looking at the daily and 4h charts.
AUDUSD recently broke the uptrend by setting a LH (lower high) snd breaking the trendline, which indicates a retest, followed by a drop.
Entry: my entry is in a area where the price tends to reverse, you can find these areas by looking for candles (multiple candles, more than 2 would be great) and wicks which end in this area. In these areas many other traders will place their sell/buy orders as well. In addition to that the sell order is slightly above the red resistance and underneath a daily key level. The black area is a sell area.
Stop Loss: MY S/L for this trade is above the previous high, which is pretty logical, since we expect the price to drop further and not expect it to make a HH (higher high). The grey area just below the S/L is a orderblock (OB), I wrote about them in another published idea.
Take Profit: My TP is at a major daily support level. I think that's a good spot to exit because 1) I'm taking the trade in 4h and daily support > 4h support 2) I am expecting buy orders to be there, since it is a pretty obv. lv 3) it perfectly fits my trading plan of having at least a 3:1 RRR.
AUDUSD recently broke the uptrend by setting a LH (lower high) snd breaking the trendline, which indicates a retest, followed by a drop.
Entry: my entry is in a area where the price tends to reverse, you can find these areas by looking for candles (multiple candles, more than 2 would be great) and wicks which end in this area. In these areas many other traders will place their sell/buy orders as well. In addition to that the sell order is slightly above the red resistance and underneath a daily key level. The black area is a sell area.
Stop Loss: MY S/L for this trade is above the previous high, which is pretty logical, since we expect the price to drop further and not expect it to make a HH (higher high). The grey area just below the S/L is a orderblock (OB), I wrote about them in another published idea.
Take Profit: My TP is at a major daily support level. I think that's a good spot to exit because 1) I'm taking the trade in 4h and daily support > 4h support 2) I am expecting buy orders to be there, since it is a pretty obv. lv 3) it perfectly fits my trading plan of having at least a 3:1 RRR.