The Aussie has formed a descending double top on the weekly charts and confirming pin bar followed by bearish engulfing candle on the daily for a high probability short trade with favourable risk to reward targets.
One good characteristic about this double top is the exhaustion candles (defined by the large wicks) that haven't reached the heights of the previous top (identified by the falling trend-line). A second touch of a support zone that is lower than the first is a market truth than indicates a downtrend and offers a higher probability set-up.
The weekly and monthly trend is down which means this trend reversal set-up is flowing with the overall strength of the market.
Those who trade solely from confirming price action at significant zones on daily charts can risk approximately 2.5% of their portfolio of a set up of this caliber and RR targets.
Happy trading :)
One good characteristic about this double top is the exhaustion candles (defined by the large wicks) that haven't reached the heights of the previous top (identified by the falling trend-line). A second touch of a support zone that is lower than the first is a market truth than indicates a downtrend and offers a higher probability set-up.
The weekly and monthly trend is down which means this trend reversal set-up is flowing with the overall strength of the market.
Those who trade solely from confirming price action at significant zones on daily charts can risk approximately 2.5% of their portfolio of a set up of this caliber and RR targets.
Happy trading :)
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The entry point has been triggered and price moving in the trades favour.
