Here is 1101s chart from the Forex Factory thread of the Eur/Aud Chart. He has taken a reversal trade however his charts are different from mine and I can’t see a push-pull setup as we don’t use the Sunday candle. However he is correct about the context of this trade.
Here are my reasons for getting in the trade, unfortunately I missed it this morning !! Just didn’t see it!
The daily chart on the right shows the brown dashed line as monthly resistance, it formed a strong level of resistance. There was also a parabolic rise to this level on the daily chart, indicating a strong downwards move if price reversed. I have marked the green push-pull level however price never pulled back to that level but there was an entry using the TAYJ system of a four hour break of a trend line and a horizontal break at the top of the parabolic move. The stop loss would sit behind the four hour breakout candle. The take profit would be the 1.44 area which lines up with the bottom of the parabolic move. This would give about a 1-8 ROI on the trade NICE!
This trade has now pulled back and created a pin at the support area which now adds confirmation to the short trade spotted by 1101, I entered the trade at the close of the four hour candle on my trading platform which has much smaller spreads but I have recreated it here on the charts. The stop loss is above the pin and is only 40 pips away from the entry. I have placed the take profit at the low of the parabolic at the 1.4530 level to give a 1-8.5 ROI the reason for not giving it a 1-10 ROI and letting it run to 1.4460 is that there is a strong trend line in the way, see the lowest chart. Whatever happens win or lose this is a good trade!