Morning Folks,
Just completed my review of yesterday’s action, the Aussie was stuck between a rock and a hard place (Previous Day’s High/sellers and 0.9400) but the Euro trended nicely during the Frankfurt session.
Here’s a nice little example of fading entries (setting a sell stop order below bullish candles or setting a buy stop order above bearish candles), too many times I’ve entered a trade, only to have it drag into my stop loss, then move into profit. Fading entries helps to get rid of that.
We’ve got an established downtrend, a breakthrough below S&R, a pullback S&R and ideally we’d be looking for a No Demand Volume once price interacts with the 14EMA.
The yellow lines indicate each location where you could set a stop sell order. each time price moves up you’re “chasing” your sell order upwards, either getting a better price (sell high) or chasing a dream!
Either way, keeping your sell order below a bullish candle ensures that price has to be strong enough to break the barrier of buyers. The sell stop order at ‘4’ also coincides with taking an entry from S&R (higher probability).