AUDCHF short based on timeframe agreement
Updated
Short trade based on timeframe agreement:
* A strong resistance zone evident on the daily on H4, giving a good reference point for stop loss
* Price overbought on the daily based on linear regression channel
* Slightly worried about the price action on the 4hourly chart as it hasn't yet broken structure to show signs of a downtrend
* However, signs of bearishness on lower timeframes (1h, 15min), with lower highs and lower lows
* Stoploss above resistance area (last Thursday's candle on the daily)
* Take profit based on a 1:1 reward to risk
* A strong resistance zone evident on the daily on H4, giving a good reference point for stop loss
* Price overbought on the daily based on linear regression channel
* Slightly worried about the price action on the 4hourly chart as it hasn't yet broken structure to show signs of a downtrend
* However, signs of bearishness on lower timeframes (1h, 15min), with lower highs and lower lows
* Stoploss above resistance area (last Thursday's candle on the daily)
* Take profit based on a 1:1 reward to risk
Note
Price action on lower timeframes has started to create a lower high at around 0.6900. Moved down stoploss to just above that level to protect profits. This protective stop now allows for a risk-free trade, with worst case scenario profit of around £40 (unless something dramatic happens in the market causing the price to gap above that stop).
Price action is still good enough to maintain original 1:1 take profit level at 0.6873. This would result in around £100 profit.
So this is trade is set to profit either £40 or £100.
Trade closed manually
Closed out +£40 profit based on the price moving passed a lower high on the lower timeframes
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