EURAUD was making a series of LHs and LLs aligned with the concept of DOW THEORY but a harmonic Bullish AB=CD pattern is identified near the current price value which can lead to a potential trend reversal near point D. The RSI graph near point D is not consistent with the price point trend which shows divergence and now point D becomes a potential reversal zone. Now, I am waiting for the trend to build and my buy-stop order will trigger after that.
My entry point for this trade is 1.63587.
SL is set at 1.61703 and my TP is set at 1.65471.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 1.67417 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.07 : approx USD 90 RISK),
(TRADE 2 : 0.07 : approx USD 90 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.07 : approx USD 90 REWARD),
(TRADE 2 : 0.07 : approx USD 180 REWARD)
}
My entry point for this trade is 1.63587.
SL is set at 1.61703 and my TP is set at 1.65471.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 1.67417 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.07 : approx USD 90 RISK),
(TRADE 2 : 0.07 : approx USD 90 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.07 : approx USD 90 REWARD),
(TRADE 2 : 0.07 : approx USD 180 REWARD)
}