AUD began climbing higher shortly after the UK session got underway, but could not close above yesterday’s high. We observe price for a while and with no significant news releases pending, we enter short. We look to see what will happen near the Asian session low. Price continues downward and we protect our profits by placing a “take profit” just above the Asian session low ( not shown on the chart ) but highly recommended. As a wicky bottom candle forms below the Asian session low, we wonder if buyers are entering the market.
We are now prepared to close the trade if price retraces, so as to protect more profits. I personally like to place my “take profit” above/below structure, or lock in pips usually but not always in 10 pip increments. Price continues down one more candle and we close on the following candle as price begins to retrace. It would be nice to have had a larger move downward, but we can only get what the market offers on any given day. It is much more important to be able to read price and manage your trades, than to concern yourself with big moves each day. Some weeks the market is much more generous than other weeks.
Happy Valentine’s Day!
Good luck with your trading!