AUDUSD provided this really great sell opportunity. I hope whoever was trading AU caught a similar move and if you didn't, I hope this video can give you some perspective! AUDUSD was trading in a range. Price wasn't ready to go longer on Monday. Tuesday gave it some fuel to go even higher. AKA right into the discount zone of the AU range. I marked out some selling areas such as the imbalance and Friday highs to look out for CLEAR rejection, that price won't be going higher. then a dump! perfect for an entry when the dump is happening. or placing the trade on the nearby OB that was around 6 pips away. the reason I showed both scenarios is it really depends on the pair and its movement on where you'll take the trade. sometimes the dump can be of 20-30 pips. and I don't take trade with such a huge SL cuz its unlikely to satisfy my min RR (for my strategy). Hence, I would place a sell limit on the OB of the sell off instead to secure a better RR. sometimes, that can mean missing out on the move. and that's ok. the price DOESN'T ALWAYS return to the OB and that's the part and parcel of trading.
I hope this explanation made sense if you were watching! thank you !!!
I hope this explanation made sense if you were watching! thank you !!!