As you can see, price dropped from a very strong order block around 125820, after breaking out of a bearish flag, followed by a strong trendline break. Im hoping to see price go even lower after that rejection on the EMAs. I am waiting for price to close below the current zone to open another position.
This is not financial advice. Forex trading is...
Price has reached the resistance level and printed a doji. Given how close this is to the complete high I am shorting NOW at market price 1.33655 for a good risk to reward ratio...
Enter @ market price 1.33655 with
Sl only 24 pips @ 1.33891 and
Tp lower down @ 50% fib retracement of the bullish move @ 1.32548 (109 pip target)
I am prepared to risk the 25 pips...
This is a classic example of the TLS trading system using price action:
Trend = down
Level = resistance
Signal = bearish engulfing (and a hanging man with confirmation)
Stop loss @ 1.32199 and
Take profit @ 1.30871
30 pip risk for 100 pip reward
Dont bet the farm and always exercise healthy risk management :)
TP is open but I am looking to swing this down to 1.275 levels again. The Dollar Index is facing resistance on the H4 and Daily timeframes and USDCAD is at resistance as well with bearish engulfing candles in place. Risk:Reward looks nice as well. The Stop loss is 40-50 pips away depending on entry.