USDMXN: Short Trigger

Hello fellow traders,

today I share the UsdMxn chart in which we have a new Short trigger signal from LuBot.

The signal appears on the daily timeframe and is a very good trigger for the following reasons:
1. Red candles: the short structure returns bearish in favor of the main trend.
2. Downswing swings with highs that do not exceed the red fast trend cloud.
3. Double pinBar with decreasing maximums
4. Signal on the third negative swing of the weekly timeframe that has just begun after a period of lateralization / breathing space.
5. Reversal Trend signal in favor of the trigger

As the first target area we see the support level given by the weekly lows starting from 2017 to which the price has reacted in recent weeks.
Breaking this level, our main objective for this trade will be the 161.8 level of the fibonacci retracement of the latest swings which coincides with the TP suggested by LuBot.

The stop loss can be placed as a precaution on the level suggested by the indicator, or if you want to increase the return risk you can place it immediately above the last high where we will see a change in the short-term structure.

You could opt for a double trade with different sizes with these 2 methods, placing the smaller size in the riskier trade. But never exceeding the total risk of 3 or maximum 5% of the total capital of the entire trade.

👍 If you want to see other similar posts, like/boost
🙋‍♂️ Remember to follow me so you don't miss my future analyses
⚠️ Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always do your research before making investment decisions.

USDMXN USDMXN USDMXN USDMXN USDMXN USDMXN USDMXN USDMXN USDMXN