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Basic setup on the 4H AUDUSD Chart, 4 main things causing me to have a bearish bias:
1.) lower highs and lower lows : 3rd trend line touch of overall bearish move
2.) .618 retracement of recent swing : "golden" fib ratio, high quality setup
3.) double top on 1H price action : prz acting as resistance
4.) daily & 4H bearish hidden divergence
This trade already presents a favorable risk to reward scenario; simply putting stops above the previous swing high & targets at the swing low will automatically yield approx 1.3R. Ideally I'm looking for an ABCD completion (0.70000 area, psychological level), and possibly a third target at the next swing low/demand zone near 0.68265.
Wishful thinking.
1.) lower highs and lower lows : 3rd trend line touch of overall bearish move
2.) .618 retracement of recent swing : "golden" fib ratio, high quality setup
3.) double top on 1H price action : prz acting as resistance
4.) daily & 4H bearish hidden divergence
This trade already presents a favorable risk to reward scenario; simply putting stops above the previous swing high & targets at the swing low will automatically yield approx 1.3R. Ideally I'm looking for an ABCD completion (0.70000 area, psychological level), and possibly a third target at the next swing low/demand zone near 0.68265.
Wishful thinking.
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