AUDUSD H4, Retracement Completed, Re-test of Swing High

Technical Analysis and Market Sentiment:
I have shorted based on the same setup of a retracement channel completed within a major resistance zone but the trade failed with minimum loss due to shifting of stop loss incorrectly. Therefore, this trade is treated as a new trade and is not meant to be a ‘revenge trade’. The trade setup here is the same except that there is a re-test of the retracement channel swing high and the top of the major resistance zone, thus signaling that the price will resume depreciation.

Trading Plan:
Short with 1/2 risk. Stop loss placed at  20 pips above retracement swing high  .

Trade was executed within/outside market hours and  10 hrs before the next major news release.

Take Profit 1: 0.7346
Take Profit 2: 0.7185
Take Profit Final: 0.7019

Initial follow-up plan: Shift stop loss to retracement swing high only when the price reaches TP1 at FR88.6% of retracement channel. If price closed above the previous high, full exit.

AUDUSD D1, Trading Plan


Trading Result: Gain/Loss               %