Context
The AUDUSD has broken market structure and trendline indicating a sell-off to the base.
1st Play of Head & Shoulders
I start the play with 2 step head and shoulders. As the market retraces to the level of the left shoulder and find confluence with 61.80% fib, I took a short, taking profit at 0.00% fib which is also the next support zone.
2nd Play of Head & Shoulders
The second play of the H&S pattern involves retesting of the neckline. Once the re-test is confirmed we are aiming for the next support level. Ultimately we wish to see the sell-off meeting the base of the trend line but we are playing it step by step.
The AUDUSD has broken market structure and trendline indicating a sell-off to the base.
1st Play of Head & Shoulders
I start the play with 2 step head and shoulders. As the market retraces to the level of the left shoulder and find confluence with 61.80% fib, I took a short, taking profit at 0.00% fib which is also the next support zone.
2nd Play of Head & Shoulders
The second play of the H&S pattern involves retesting of the neckline. Once the re-test is confirmed we are aiming for the next support level. Ultimately we wish to see the sell-off meeting the base of the trend line but we are playing it step by step.