AUDUSD was making a series of LHs and LLs aligned with the concept of DOW THEORY but the RSI graph at the bottom of the trend is not consistent with the price point trend which shows there are chances of a trend reversal due to divergence. The falling Wedge reversal pattern is also identified at the bottom of the trend further strengthening the case for a possible trend reversal.
My entry point for this trade is 0.65754.
SL is set at 0.64815 and my TP is set at 0.66693.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 0.67632 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.11 : approx USD 100 RISK),
(TRADE 2 : 0.11 : approx USD 100 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.11 : approx USD 100 REWARD),
(TRADE 2 : 0.11 : approx USD 200 REWARD)
}
My entry point for this trade is 0.65754.
SL is set at 0.64815 and my TP is set at 0.66693.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 0.67632 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.11 : approx USD 100 RISK),
(TRADE 2 : 0.11 : approx USD 100 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.11 : approx USD 100 REWARD),
(TRADE 2 : 0.11 : approx USD 200 REWARD)
}