The EURAUD short
EURAUD has been consolidating for a pretty long time. I'm expecting the pair to drop so now is our chance to catch the trade at the very top and collect a nice amount of pips.
Why I am axpecting it to break the consolidation now?
If you look a bit left on your 4h chart you see another consolidation and it lasted for about 27 days. Right now EURAUD is on a 25 day consolidation so im expecting it to break soon. You can learn a lot about a pair by looking at past price action.
THE ENTRY
You don't want to just jump in a sell on an up trend, that's why we are waiting for the shift of momentum, which I've explained in my previous post (The MARKET STRUCTURE). The pair is on a zone right now but we are waiting for a big 4h bearish engulfing candle to close. You want to see a really short wick or no wick at all would be perfect.
So that shoudl look something like this:
If a candle like that closes you want to be selling it.
What about entry and stoploss?
You enter the trade on a closing of a big fat 4h candle, and you should put your stoploss a few pips above the previous high. (I have drawn a short position in case of a big 4h bearish candle).
Why I am axpecting it to break the consolidation now?
If you look a bit left on your 4h chart you see another consolidation and it lasted for about 27 days. Right now EURAUD is on a 25 day consolidation so im expecting it to break soon. You can learn a lot about a pair by looking at past price action.
THE ENTRY
You don't want to just jump in a sell on an up trend, that's why we are waiting for the shift of momentum, which I've explained in my previous post (The MARKET STRUCTURE). The pair is on a zone right now but we are waiting for a big 4h bearish engulfing candle to close. You want to see a really short wick or no wick at all would be perfect.
So that shoudl look something like this:
If a candle like that closes you want to be selling it.
What about entry and stoploss?
You enter the trade on a closing of a big fat 4h candle, and you should put your stoploss a few pips above the previous high. (I have drawn a short position in case of a big 4h bearish candle).
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