I witnessed a divergence in the AUDCHF pair in a 1H timeframe. Furthermore, there was an evident rising wedge pattern that could be witnessed, signaling a possible trend reversal
Strategy to approach this potential Short sale trade for AUDCHF:
1) Wait for the price to break previous HL. In my case the price had already crossed breakdown therefore the right approach would be to enter the trade through a short sale on market price. Market price for two trade (lot size - 0.20) was 0.61905
2) Entered a Stop Loss, which I put a little bit above the HH (Previous HH was at 0.62370). I placed the stop loss at 0.62379 (to avoid SL triggering, due to spread)
3) Keeping the risk/reward ratio to 1:1, I kept the Take Profit 1 level at 0.61530
Strategy once Take Profit 1 is achieved:
1) Once Take profit 1 is achieved, I will revise the Stop loss level to the previous Take Profit 1 level i.e. 0.61530 for breakeven.
2) For the 2nd leg of the trade my Take Profit 2 is 0.61105
Strategy to approach this potential Short sale trade for AUDCHF:
1) Wait for the price to break previous HL. In my case the price had already crossed breakdown therefore the right approach would be to enter the trade through a short sale on market price. Market price for two trade (lot size - 0.20) was 0.61905
2) Entered a Stop Loss, which I put a little bit above the HH (Previous HH was at 0.62370). I placed the stop loss at 0.62379 (to avoid SL triggering, due to spread)
3) Keeping the risk/reward ratio to 1:1, I kept the Take Profit 1 level at 0.61530
Strategy once Take Profit 1 is achieved:
1) Once Take profit 1 is achieved, I will revise the Stop loss level to the previous Take Profit 1 level i.e. 0.61530 for breakeven.
2) For the 2nd leg of the trade my Take Profit 2 is 0.61105