Bearish Divergence on EUR/AUD, Price might move lower to 1.6260
Form my assumptions and experiences after price created bearish divergences signal there is a potential that price will move lower. To open position, we need to do 3 important things.
1. Identify types of Divergences.
2. Draw the channel to identify the proper entry price.
3. Choose the proper Risk: Reward which I prefer 1:2
1. Bearish Divergence (good to open short position).
2. Open the position only if the price closing below the channel I have drawn earlier.
3. I will put my stop loss under the recent highest plus 5-10 pips. With 1:2 Risk to Reward ratio. The target for this signal should be 1.6260.
1. Identify types of Divergences.
2. Draw the channel to identify the proper entry price.
3. Choose the proper Risk: Reward which I prefer 1:2
1. Bearish Divergence (good to open short position).
2. Open the position only if the price closing below the channel I have drawn earlier.
3. I will put my stop loss under the recent highest plus 5-10 pips. With 1:2 Risk to Reward ratio. The target for this signal should be 1.6260.
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