AUDUSD - Reversal sell trade setup
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| AUDUSDDaily Chart |
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| AUDUSD 4-Hour Chart |
This is reversal sell trade setup that I took on 8 Nov 2018.
Setup:
Daily chart showed AUDUSD was testing its previous swing high at 0.7290. Drilling down to the 4-Hour chart showed AUDUSD was making a higher price high but a lower MACD high to form a MACD bearish divergence pattern. Although the 4-Hour trend was still up, bearish divergence between price and MACD indicated the uptrend was losing steam and likely to reverse.
Entry:
I entered a short trade at 0.72827 on 8 Nov 2018 (Thu) after the 3 bars consolidation candles, which formed at the 0.7290 resistance area, were taken out.
Exit:
I took partial profit at 0.72247 on 9 Nov 2018 (Fri) for a +58 pips profit in order to reduce my weekend exposure.
I still have a half of my short position opened, which is now risk free after I moved my stop loss lower to 0.7255, with a Take Profit level at 0.7190.
Setup:
Daily chart showed AUDUSD was testing its previous swing high at 0.7290. Drilling down to the 4-Hour chart showed AUDUSD was making a higher price high but a lower MACD high to form a MACD bearish divergence pattern. Although the 4-Hour trend was still up, bearish divergence between price and MACD indicated the uptrend was losing steam and likely to reverse.
Entry:
I entered a short trade at 0.72827 on 8 Nov 2018 (Thu) after the 3 bars consolidation candles, which formed at the 0.7290 resistance area, were taken out.
Exit:
I took partial profit at 0.72247 on 9 Nov 2018 (Fri) for a +58 pips profit in order to reduce my weekend exposure.
I still have a half of my short position opened, which is now risk free after I moved my stop loss lower to 0.7255, with a Take Profit level at 0.7190.
Disclaimer:
Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.
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