AUDUSD Head & Shoulders - 4 HR
Another USD position. This one has eluded me for a couple of weeks but became clear to me a couple of days ago that a head and shoulders was forming after the 5th touch of the pendant (horizontal triangle) seen here with these trend lines in green and cyan blue.
This corrective structure hit the 5th or the E wave on what we call the 'head' of this H&S pattern so are therefore more likely to see a break of the bottom trend line if we see a break and close below the neckline of the head and shoulders. If price doesn't break and close below this level it is likely to instead break through the top trend line therefore ruining all possibility of a short entry.
I entered yesterday, the 4th October, to get the best possible position for this short as can be seen on the chart.
This position can still be entered at a lower level when/if price hits the bottom, after it pulls back for another run south indicated by the red and green arrows.
This corrective structure hit the 5th or the E wave on what we call the 'head' of this H&S pattern so are therefore more likely to see a break of the bottom trend line if we see a break and close below the neckline of the head and shoulders. If price doesn't break and close below this level it is likely to instead break through the top trend line therefore ruining all possibility of a short entry.
I entered yesterday, the 4th October, to get the best possible position for this short as can be seen on the chart.
This position can still be entered at a lower level when/if price hits the bottom, after it pulls back for another run south indicated by the red and green arrows.
Trade closed manually:
Closed early at 0.75400 as to avoid market rebounding before TP level.
This still offered a great risk reward so I am not too bothered by missing out on 10 pips.
Hope everyone who got short on this enjoyed the ride.
This still offered a great risk reward so I am not too bothered by missing out on 10 pips.
Hope everyone who got short on this enjoyed the ride.