EURAUD continuation of the downtrend
I know, I know. You are not very happy about the 1:1.9 risk to reward ratio :)
I want to start the analysis from there. The risk to reward ratio is not very appealing and we usually trade with a ratio that is at least 1:2.
The reason I still like this trade is that the down-channel is very steep, this offers the possibility to easily adjust the stop loss and the take profit if the trade proceeds in a favorable direction. This is one of those few opportunities I like to trade with a trailing stop order, since it makes sense to move the stop loss as the trade proceeds, as long as the stop loss remains above the down-channel.
Regarding the logic of the trade, right now, there is no action by sellers, so I think it doesn't make sense to open a trade immediately. I will wait for more action by sellers, placing a stop entry order at 1.6050.
With the price going above the channel, we will cancel our trade.
I want to start the analysis from there. The risk to reward ratio is not very appealing and we usually trade with a ratio that is at least 1:2.
The reason I still like this trade is that the down-channel is very steep, this offers the possibility to easily adjust the stop loss and the take profit if the trade proceeds in a favorable direction. This is one of those few opportunities I like to trade with a trailing stop order, since it makes sense to move the stop loss as the trade proceeds, as long as the stop loss remains above the down-channel.
Regarding the logic of the trade, right now, there is no action by sellers, so I think it doesn't make sense to open a trade immediately. I will wait for more action by sellers, placing a stop entry order at 1.6050.
With the price going above the channel, we will cancel our trade.
Order cancelled:
The stop entry order has not been triggered, trade has been cancelled.
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