Bearish Forecast (100 pips)
Trend Analysis: A bearish forecast suggests that you expect the price of EURAUD to decline. This could be based on a technical setup, such as a clear downtrend or price action indicating weakness in the euro or strength in the Australian dollar.
Resistance Levels: You might have identified resistance levels or technical patterns (like a head and shoulders, bearish flag, or a rejection at a key moving average) that point to a potential downward move.
Target (100 pips): You're aiming for a price move of 100 pips from your entry point, which could be based on a calculated move or previous price swings in a similar range.
20 Pip Stop Loss
Risk Management: A 20-pip stop loss is relatively tight, which indicates you're trying to limit your downside risk in case the market doesn't move in your predicted direction.
Risk-to-Reward: If you're targeting 100 pips with a 20-pip stop loss, that gives you a 5:1 risk-to-reward ratio. For every 1 pip of risk, you're aiming for 5 pips in reward, which is a favorable risk profile for your trade.
Volatility Consideration: EURAUD can sometimes be volatile, so it's important to ensure that the stop loss is placed at a reasonable level where price action can fluctuate without triggering you prematurely. You’ll want to place the stop loss just above a key resistance level or swing high that could be a logical invalidation point for your bearish view.
Trend Analysis: A bearish forecast suggests that you expect the price of EURAUD to decline. This could be based on a technical setup, such as a clear downtrend or price action indicating weakness in the euro or strength in the Australian dollar.
Resistance Levels: You might have identified resistance levels or technical patterns (like a head and shoulders, bearish flag, or a rejection at a key moving average) that point to a potential downward move.
Target (100 pips): You're aiming for a price move of 100 pips from your entry point, which could be based on a calculated move or previous price swings in a similar range.
20 Pip Stop Loss
Risk Management: A 20-pip stop loss is relatively tight, which indicates you're trying to limit your downside risk in case the market doesn't move in your predicted direction.
Risk-to-Reward: If you're targeting 100 pips with a 20-pip stop loss, that gives you a 5:1 risk-to-reward ratio. For every 1 pip of risk, you're aiming for 5 pips in reward, which is a favorable risk profile for your trade.
Volatility Consideration: EURAUD can sometimes be volatile, so it's important to ensure that the stop loss is placed at a reasonable level where price action can fluctuate without triggering you prematurely. You’ll want to place the stop loss just above a key resistance level or swing high that could be a logical invalidation point for your bearish view.
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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.
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.