Below is a trade plan of the AUDUSD pair at the start of a downtrend.
AUDUSD Daily D1
(1) Support and resistance (1.1) Price action resistance below MM4. (1.2) Support at MM1 (2)Market (2.1) 21/55 is almost holding sideways with a tight angle of separation and no distinct trend. (3)Price (3.1) Stochastics are coming into overbought 5/8 is still steep due to lower time frames coming into the overbought area.
(1) Support and Resistance (1.1) Price action resistance below WR1 @WR1 confluence (1.2)Support is just above WPP (2) Market (2.1) 21/55 is still quite steep but there is no distinct trend. (3) Price (3.1) Stochastic is coming into the overbought area 5/8 is still holding up and I will await a 5/8 switch on lowe time frames and look for an entry on roll reversal.
(1) Support and reisitnace (1.1) Price action reistance at DR2 which is the daily profit taking zone for bulls. (1.2) Support is @DS1 (2) Market (2.1) 21/55 is more siide ways (3) Price (3.1) Stochastic is in over bough and 5/8 has switched. Im awaiting for roll reversal and will look for an entry DM4.