In this example, we will look into the parallel channel formed on AUDUSD.
How Retail View the Breakout:
How Smart Money View the Breakout:
How Retail View the Breakout:
- Price broke and re-tested the breakout trendline
Price should now continue bearish after showing signs of rejection
How Smart Money View the Breakout:
- Price broke out of the retail trendline, liquidity has now been formed in their stop loss region
Once this area is wiped, we could consider sells from the order block that created it.
