[Breakeven – Trade setup] Sell AUDJPY

AUDJPY Sell trade

AUDJPY on 4H has just grabbed liquidity from equal highs and has broken down, creating a bearish breaker in the process. When price comes back to this bearish breaker, we can look for a sell trade, targeting equal lows below.

4H Trade setup

Daily chart has just completed an objective of grabbing liquidity above equal highs. We are trying to catch a break down from there. Same appears on Weekly chart as well.

Daily chart
Weekly chart

Monthly chart is still bullish – and that’s what not in sync with this trade. So either this trade works soon & quickly – or we will get out of it.

Monthly chart

Trade confluences

  • Price just grabbed top side liquidity and has fallen. It should have no business going back up.
  • Weekly & Daily charts are in sync
  • 4H zone is housed within a daily bearish OB-
  • We are trading from a premium area in the range on 4H chart
  • Clear liquidity target at 1R
  • Price is in a range. We can sell at premium and buy in discount.

Do note that the trade gets negated if price first grabs downside liquidity and then comes back into our trade zone.

Update – 21 April, 10:20 PM

Price has seen a good rejection from the trade zone. It now needs to clear the bullish orderblock and then the path is clear to the downside liquidity.

Update – 4H chart

Update – 22 Apr 12:30 PM

1R hit, Took out partial profit for 50% volume. This trade is now risk free.

4h chart

Update – 27 Apr

After hitting 1R, price sharply reversed and took out my stop loss. Since I was already breakeven when I took out the 50% volume – no money was lost on this trade.

4H trade – break even

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