Hi All, just running some weekend analysis to get ready for next week trading. Here we have a potential chance on the AUDUSD. Formation of the XABC for a BAT pattern. Price has yet to close above our B leg but we are very close.
Early predictions are always good to set ourselves up for potential opportunities. If we look left at our X leg you could choose the lower leg as the X but keep in mind a full move from high to low is a better chance in this case because it provides us better stop protection for price reversal.
Depending on how you read the chart I dont bother looking if the pair is bullish or bearish I simply look for the signals and enter. Important to follow your rules and execute with no emotion. Market says green light we get our orders in. I we look at our X leg this was a perfect opportunity for the 2618 trade for those who trade this strategy, So we see double top then price made new structure low with our outside return for the 61.8% entry. Then price falls for our targets
After this we also see new structure low outside return into a price reversal with a retest creating our B leg. As we also look at the price trying to retest the A leg it gets support from that previous structure before we climb into a test of the B leg. If we get a price break and close beyond our B Leg then we would expect an outside return to retest that structure level and all goes well we would expect the Resistance to then become support and pushing price up to our entries.
As always make sure to follow your rules. Entries Stops and Targets are on screen but need to be managed during the trade.
Targets are always moved when we have a D completion unless we go past X and we get stopped out of the trade.
Stops we never move these until we get our TP1 hit after entry - then we simply move stops to break even. And hope to hit our TP2
Early predictions are always good to set ourselves up for potential opportunities. If we look left at our X leg you could choose the lower leg as the X but keep in mind a full move from high to low is a better chance in this case because it provides us better stop protection for price reversal.
Depending on how you read the chart I dont bother looking if the pair is bullish or bearish I simply look for the signals and enter. Important to follow your rules and execute with no emotion. Market says green light we get our orders in. I we look at our X leg this was a perfect opportunity for the 2618 trade for those who trade this strategy, So we see double top then price made new structure low with our outside return for the 61.8% entry. Then price falls for our targets
After this we also see new structure low outside return into a price reversal with a retest creating our B leg. As we also look at the price trying to retest the A leg it gets support from that previous structure before we climb into a test of the B leg. If we get a price break and close beyond our B Leg then we would expect an outside return to retest that structure level and all goes well we would expect the Resistance to then become support and pushing price up to our entries.
As always make sure to follow your rules. Entries Stops and Targets are on screen but need to be managed during the trade.
Targets are always moved when we have a D completion unless we go past X and we get stopped out of the trade.
Stops we never move these until we get our TP1 hit after entry - then we simply move stops to break even. And hope to hit our TP2