AUDUSD D1, Top of Major Support Turned Resistance Zone
AUDUSD H4, Major Retracement Channel

Technical Analysis and Market Sentiment:
The price was seen falling from the top of a major falling channel based on W1 chart and is now resisted at the top of a major support turned resistance zone. The price has also completed a major retracement channel on the H4 chart.

Trading Plan:
Short with full risk. Stop loss placed at  swing high of a probable 3rd wave of major retracement   .

Trade was executed within/outside market hours and  >24  hrs before the next major news release.

Take Profit 1: 0.7474
Take Profit 2: 0.7331
Take Profit Final: 0.7023

Initial follow-up plan: If the price breaks and closes higher than 0.7487, FR38.2%, only based on H4 chart, exit half position. If the price reaches the bottom of the retracement channel, shift stop loss to top of retracement channel.

AUDUSD.Daily 20161128 trading plan.png
AUDUSD D1, Trading Plan

[28/11 20:41]
Shift stop loss 20 pips above swing high of major retracement channel.

[29/11 17:04] Re-shorted as another retracement channel was formed within the major resistance zone.

[30/11 03:10] exited half position

[08:16] Hit stop loss at retracement channel swing high

AUDUSD.M15 20161128.png

Trading Result: Loss   3.2  %


The biggest mistake was the failure to look at the trade setup objectively and shift stop loss accordingly.

The stop loss was not supposed to be shifted to retracement swing high because based on the trade setup, the price has not reached FR88.6% of the retracement channel.

It was the act of going into the smaller timeframe that created a false sense that the price is breaking lower and will not retrace back to the retracement swing high for re-test.

The good thing is I set price alarm to alert me in the middle of the night should the price takes the wrong turn and I can cut loss.