AUDNZD: POTENTIAL BUYING OPPORTUNITY WITH LOW RISK HIGH REWARD!!
Hello Traders,
This is a very simple price action based long trade setup on
AUDNZD
. After reading the price chart, we see the market is in trending mode and currently we are seeing a retracement back into previous structure support (HL). With market coming closer to the previous higher low (HL), this reduces our risk on this trade quiet significantly. Right now we are about finish the AB=CD correction, which completes right within the Fibs cluster zone (green box). I was able to come up with this cluster zone by drawing out Fibonacci retracements, extensions, and inversions from previous market swings.
The stop loss has to go below the previous high low but it also has to be far enough in order to give the trade some breathing room and at the same time not taking huge amount of risk. Taking into account the average true range (ATR= 14 period) based on the 4 hour time frame, this pair moves roughly about 45 pips on average. Thus adding few extra pips to the ATR, we get our stop loss level for this setup at 1.0665 level. Both targets for this setup are structure based, meaning looking back at previous price level that may have acted as strong resistance levels. Thus I saw two clear resistance levels at which it seems reasonable to take some profit off the table, one is at 1.08219 level and the other is at 1.08688 level. See the chart above for more details.
That’s all I would like to cover for this trade setup. If you guys have any questions or comments about this trade, feel free to write in the comment section located under this description section. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. All The Best :)
Follow me on Twitter as well: moneymaking2016
This is a very simple price action based long trade setup on
AUDNZD
. After reading the price chart, we see the market is in trending mode and currently we are seeing a retracement back into previous structure support (HL). With market coming closer to the previous higher low (HL), this reduces our risk on this trade quiet significantly. Right now we are about finish the AB=CD correction, which completes right within the Fibs cluster zone (green box). I was able to come up with this cluster zone by drawing out Fibonacci retracements, extensions, and inversions from previous market swings. The stop loss has to go below the previous high low but it also has to be far enough in order to give the trade some breathing room and at the same time not taking huge amount of risk. Taking into account the average true range (ATR= 14 period) based on the 4 hour time frame, this pair moves roughly about 45 pips on average. Thus adding few extra pips to the ATR, we get our stop loss level for this setup at 1.0665 level. Both targets for this setup are structure based, meaning looking back at previous price level that may have acted as strong resistance levels. Thus I saw two clear resistance levels at which it seems reasonable to take some profit off the table, one is at 1.08219 level and the other is at 1.08688 level. See the chart above for more details.
That’s all I would like to cover for this trade setup. If you guys have any questions or comments about this trade, feel free to write in the comment section located under this description section. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. All The Best :)
Follow me on Twitter as well: moneymaking2016
Comment:
UPDATE #1: Long entry has been triggered. All the BEST :)
Comment:
UPDATE #1: 1st target reached. Stops move to break even :)
Comment:
UPDATE #2: Hello everyone, just got 2nd target filled. If you entered with more than 2 positions, you can hold the last position for even longer term, but keep in mind that, this pair is range bound on the daily time frame. I have labelled potential 3rd target levels (green lines) based on the daily chart.
All the BEST :)
All the BEST :)
Comment:
UPDATE #3: Hey everyone, market came right back to the entry point. All the break even stop losses should have been executed. No more positions are open on this pair.
