I'll be looking for a pullback to channel support where it coincides with 38.2 fib level for a potential long trade. This warrants a 1:4 risk-to-reward trade. I would like to see a retest and a bounce off fib level / horizontal support / parallel support. This added confluence will make this a high probability trade.
Comment:
We can see a crooked double bottom form on the daily chart of AUDUSD. Another way to look at it would be Higher Highs, Higher Lows.
Comment:
To add on, I would want to see a bullish reversal candle on H2 should price make its way to the mentioned area below.
If I were to take the trade based on my entry rules, I'll have my stop below 0.6130, roughly 100 pips away from entry with a 400 pips TP somewhere around 0.6620 where it coincides with a fib extension level
If I were to take the trade based on my entry rules, I'll have my stop below 0.6130, roughly 100 pips away from entry with a 400 pips TP somewhere around 0.6620 where it coincides with a fib extension level