EURAUD continuation of the downtrend
Updated
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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