This post is a review of the AUDUSD analysis posted on May 6, 2020. The review is aimed at examining the different happenings in the market after the release of the AUDUSD analysis on the 6th of May. This is done so as to gain knowledge and become better at trading.
Below is the screenshot of the post.
I recommended that take profit should be placed before the next support.
After the analysis was published, the market moved down just as expected and touched the support at around 0.6377. Any trader who traded according to my recommendations would have been out of a trade with a profit by this time.
After reaching the support, the market reversed aggressively, moving up very quickly, with successive bull candles.
This movement reinforces what I know and I advise. It is always safe to place your target before the next major support or resistance. This is to save yourself of the hassle that comes with being in an undecided market.
Granted, the market does not react this way every time it reaches major support or resistance, but if you had held on to this trade for just a little more profit, you would have turned a winner into a loser. This is a nightmare no trader wishes for.
In conclusion, traders should always exercise caution when trading the forex market. This is because trading the forex market is very risky and can lead to partial or complete loss of capital if necessary precautions are not taken. Happy trading :).
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