AUDUSD Entry and Trade Management (-90 pips)

Each week I send my weekly watchlist to my community. This is AUDUSD from last week’s watchlist. Although I use multiple entries I will only be showing how new traders on my team following the rules of my book should take a single entry and how the trade should be managed.

Although you would’ve lost 90 pips on this trade there’s knowledge to be had from the management of this trade so let’s go.

AUDUSD Setup

Based on the setup below we were looking for a strong break of the low highlighted to sell. So let’s see what happens.

New Sell Stop Established, Watchlist Break no Longer Valid

If we look at the chart below we will see that the point where we were first looking for an entry is no longer valid and I’ll explain. In a bullish market, I’m normally looking for a sell which is most likely to be a STRONG break of the most recent Highest Low and if we look carefully a new highest low has been formed and I have marked VALID. So that is the new low where I will be looking for a break. The break of the low from the watchlist isn’t valid anymore. The key is to be able to apply yourself to the new market data and execute.

So now my sell stop would no longer be at the area marked on the watchlist but up to the new highest low marked valid. Have you also noticed the new points for the trendline marked with a tick?

Sell Stop Triggered

The sell stop is in place at the new valid point and has now been triggered. You should also notice a new trend has been formed hence the new bearish trendline. The sell stop area is marked with a downwards arrow and green line. Before the sell stop got triggered the stop-loss was at the highest x (-143 pips). After the sell stop got triggered a new trend has started and you can see by the bearish trendline. As such, a new stop-loss area has been formed at the lower x (-88 pips). The strategy dictates using trendlines to move your stop-loss, refer to book.

Stopped Out at 88 Pips

So the trade got stopped out at -88 pips at the point marked with x.

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