DislikedHi, Got a few questions here. Been learning about the 4hr MACD for the last 1 week. Not too sure if I made the right decision in shorting AUDUSD yesterday. I used the H4 chart. 8MA was below 21MA, 21 below 89MA---that indicates a strong bearish market rhythm right? Going to the dailys, the trend still appears to be bearish. So, I saw a TC forming on the AUDUSD, candles bouncing off the 21MA. I went to the H1 and made my short entry from there. However, the price went north and took out my SL after another 10-12hrs. I understand that there isn't...Ignored
Here is my view:
-price below 89 => bearish mood
-MACD gives a signal (Sell)
-price came back to 21 and bounced south (at time of entry 35pips below 8ema)
-Rule: if price away from 8, price tends to go back to 8
SL = last swing high = 75 pips
TP = SL....but in this case I would say....next pricelevel is +/- 55 pips
R:R is bad.... I would say: No Deal
You can manage risk, but you can't manage the return