AUDUSD was making a series of HHs and HLs aligned with the concept of DOW THEORY but the RSI graph at the top of the trend is not consistent with the price point trend which shows there are chances of a trend reversal due to divergence. The rising Wedge reversal pattern is also identified at the top of the trend further strengthening the case for a possible trend reversal.
My entry point for this trade is 0.67406.
SL is set at 0.68091 and my TP is set at 0.66721.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 0.66036which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.13 : approx USD 90 RISK),
(TRADE 2 : 0.13 : approx USD 90 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.13 : approx USD 90 REWARD),
(TRADE 2 : 0.13 : approx USD 180 REWARD)
}
My entry point for this trade is 0.67406.
SL is set at 0.68091 and my TP is set at 0.66721.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 0.66036which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.13 : approx USD 90 RISK),
(TRADE 2 : 0.13 : approx USD 90 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.13 : approx USD 90 REWARD),
(TRADE 2 : 0.13 : approx USD 180 REWARD)
}