I posted details of a sell set up on the AUD:JPY hourly chart yesterday.
The set up was triggered when price dropped below the trading range support.
To assist readers following the trade, the chart below notes one approach to setting entry and exit levels for this set up
This strategy is the same as the one outlined in my 15 April post on a USD:JPY triangle sell set up. To keep this post simple, I won't repeat the strategy here. If you are interested you can easily get details by clicking on the 15 April post.
In this AUD:JPY strategy, a one candle trailing stop loss is used once price gets 61.8% of the way to the profit objective. Just as with the previous USD:JPY set up, price rejected this 61.8% level and the stop was triggered when the high of the previous candle was taken out.
For traders who are still short in this position, it is interesting to see that price has rallied and rejected the resistance at the bottom of the trading range. As I'm sure most readers are aware, this is known as a re test. One common strategy in this circumstance is to move your stop down to just above the re test peak
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