AUS200 short
I opened a short position yesterday based on 4H and daily chart.
My reasoning is as follows:
Daily
1) The price broked above the previous high (8525), failed it hold, and dropped and closed below the previous higher high.
2) It moved and closed below the ascending trendline.
3) All momentum indicators are now moving to the downside.
4H
1) The candles consolidated below the ascending treandine and failing to move above the line.
2)The price broked beow Fib 0.238.
3)Both MACD and RSI entered the bear territory.
Entry - 8483
S/L - 8580
Target - 8256
Risk:Reward - 1:2.65
My reasoning is as follows:
Daily
1) The price broked above the previous high (8525), failed it hold, and dropped and closed below the previous higher high.
2) It moved and closed below the ascending trendline.
3) All momentum indicators are now moving to the downside.
4H
1) The candles consolidated below the ascending treandine and failing to move above the line.
2)The price broked beow Fib 0.238.
3)Both MACD and RSI entered the bear territory.
Entry - 8483
S/L - 8580
Target - 8256
Risk:Reward - 1:2.65
Trade active
4H candles broke, retested and closed below the support line at 8400 area (the previous lower high in the daily chart). The price is also clearly moved below EMA 200 and EMA 21 is rolling down. Momentum indicators are approaching the oversold territory in 4H, so I anticipate the price to pull back.
I am going to add a short position if the following conditions are met:
1) the price revisits the former support zone (8400), retests and closes below it.
2) retests EMA 200 and closes below it
3) momentum indicators are moving to the downside
Trade closed: target reached
added more positions
moved stop loss to the entry price for the first position
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.