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Rejection

EURAUD continuation of the downtrendI 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.
Short
by FedericoSellitti
EURUSD to go down, following the descending channelEURUSD is at the top of a descending channel, so we can try to find any action by sellers, confirming that this is a good level to get in with a short position. At the moment, on the H4, we have a good upper shadow hitting the upper part of the channel, but I would like to wait for a stronger action, so I place a sell stop entry order at 1.1110, so we can verify if sellers are able to push the price lower than this. Price is still more than 20 pips far from our order, so let's see if it is going to be triggered.
Short
by FedericoSellitti
2
EURAUD trading the rejection at the top of the rising wedgeEURAUD 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.
Short
by FedericoSellitti
1
EURCHF bouncing on the support?EURCHF is testing for the third time a support that already proved to work in the past even as a resistance. Since we can play this trade with a great risk to reward ratio, placing the stop loss right below the support and the take profit around the green area, I suggest to sacrifice a portion of your potential profit and choose an entry that is higher than the current price, waiting for a bullish candlestick pattern that confirms that buyers are reaction on that support.
Long
by FedericoSellitti