AlkalineFX

Retail vs Smart Money Examples

Education
FX:AUDUSD   Australian Dollar / U.S. Dollar
In this example, we will look into the parallel channel formed on AUDUSD.

How Retail View the Breakout:

  • Price broke and re-tested the breakout trendline

    Price should now continue bearish after showing signs of rejection


How Smart Money View the Breakout:

  • Price broke out of the retail trendline, liquidity has now been formed in their stop loss region

    Once this area is wiped, we could consider sells from the order block that created it.




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