EURAUD trading the rejection at the top of the rising wedge
Updated
EURAUD is following a rising wedge and the setup of the moving averages also show that there is an uptrend. So why am I planning a short position?
The rising wedge is still quite large and this gives the opportunity to try to find a rejection at the top of it, with a great risk to reward ratio.
Also, the moving averages are quite close to each other, so with a rejection at the top, the setup could change quite fast, so I wouldn't rely that much on that in this situation.
I structured the trade to trade the rejection at the top and also a breakout at the bottom, but I would start to take part of my profits if the price reached the bottom of the rising wedge.
The rising wedge is still quite large and this gives the opportunity to try to find a rejection at the top of it, with a great risk to reward ratio.
Also, the moving averages are quite close to each other, so with a rejection at the top, the setup could change quite fast, so I wouldn't rely that much on that in this situation.
I structured the trade to trade the rejection at the top and also a breakout at the bottom, but I would start to take part of my profits if the price reached the bottom of the rising wedge.
Trade active
Opened the trade after the reaction by sellers. Very good upper shadow on the rising wedge and good red candle following. Worse risk to reward ratio, but still a great one!Note
Sorry for posting the trade with the Ichimoku, I was just checking my trades with the Ichimoku account and I forgot to switch back to Swing Trading :)Trade active
First take profit at 1.6280, removing 1/2 of the position with a great profit. Keeping the rest of the position to check if we have a breakout.Trade active
Took 1/2 of the profit and moved the stop loss at 1.6380.
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