How I would have traded the recent AU daily H&S formation
This is just a quick explanation of how I would have traded the head and shoulders formation that happened on the Daily AUDUSD. The chart is on the hourly because that is where I derive my trade logic. The indicators I use are not available on tradingview, so I cannot display those.
The entry/stop/exit are shown as zones because I am not sure exactly how the market was behaving during this peak. If it was a sudden burst, the entry would be near the peak of the move. If it was a slow push, the entry would be closer to the lower bounds of the entry range. The stop and target are based on the entry. Stop is always 25 pips, target is always 50 pips.
The entry/stop/exit are shown as zones because I am not sure exactly how the market was behaving during this peak. If it was a sudden burst, the entry would be near the peak of the move. If it was a slow push, the entry would be closer to the lower bounds of the entry range. The stop and target are based on the entry. Stop is always 25 pips, target is always 50 pips.