AUDCAD Trend Continuation Pattern
Welcome back for some more chart analysis practice. I found another trend continuation pattern opportunity here for some analysis practice on AUDCAD. So, as you can see, after the market closed below the previous lowest low of 0.91058, it continued lower and closed lower @ 0.90754, there by making a new lower low. This leads me to believe that there is a good chance the market will continue the trend lower. Now that the market has retraced back into previous structure, which was support and has now turned into resistance, and has retraced back into the 0.618 Fib retracement level, I will look to hypothetically enter the market @ 0.91547. I will also place my stop loss 10 pips above the previous lower high @ 0.92151, and my target @ 0.90730. So far, the market appears to be holding a little above my entry point, so we will have to see whether the market intends to continue with the overarching bearish trend, or whether the market will touch my entry only to rally from there and stop me out.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only. I am not taking this trade in real life, and I have not back-tested this particular strategy on the AUDCAD, so I really don't know how this type of trading strategy will work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only. I am not taking this trade in real life, and I have not back-tested this particular strategy on the AUDCAD, so I really don't know how this type of trading strategy will work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Trade closed: stop reached:
Unfortunately, in this particular situation, the market bounced right off my entry and rallied higher to stop me out. This could very well be a complex pullback, or an outright trend reversal. Either way my analysis was incorrect, but like I have stated many times in the past, that is just how trading is. So, I hope you guys enjoyed this and I will see you in the next one.