Shorting AUD/USD has never been a bad thing this past 6months (haha) so yet again I find myself feeling pretty good about going short here.
Let me know what you guys think of this trade set up! Thanks!
Comments
Kumowizard
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In general I think we might see some usd correction tomorrow on all crosses. So likely AUDUSD will pull back too. But if I look at my charts (fyg I mainly trade Ichimoku Kinko Hyo with addition of some other basic indicators) I would use this pull back for one thing: look for the next possible entry point for long. Of course if you are long AUDUSD now, it is wise to take partial profit and re-enter longs later. If you wanna do contra trade against the recent trend, I dont say you cant do it. But use only 1/3 position size. Problem with counter trades are that they kill your proper trading menthality and mind in any way: if you loose money on them you get more and more frustrated and it kills your self confidence; if you make money on them, you will get a fake feed back, believing your setup was a good one and your mind will automatically look for the same kinds, while these trades most of the time have a very low probability of success (winning).
I had some similar attempt in WTI crude few days ago. It was a sht idea, and frankly spkn something like 2 hours after I opened the shorts i manually closed them, as I realised that it was not a trade matching my setup criterias, but only stg like a pure gutfeeling to go short on the 4 hrs chart as it seemed overbought.... So it is even more overbought now, trading more than 2,5 figure higher, closer to 101 usd :-).
So put it this way. Ask only two questions from yourself: 1. what is my precise trade setup for taking a short position (u might know it from your trading strategy). 2. Is the short setup really there on this chart and is it valid?
If u can answer these two questions within 8-10 seconds, and the answer for the second question is totally positive, then go short. If you feel like you have to look at this chart more, or you answer like "well, uhmmm, yes... Mmmm, aaamm, maybe, etc.", then just forget it and look for something more clean and obvious.
Ah, and one last thing. Never feel sorry for any missed trades, which you had no confidence with! Feel sorry for those that you did not enter, despite you had the clear, valid and confident setup.
Sry for being this long, but hope you found it useful.
P.s.: Maybe tomorrow I check my charts and will post an Ichimoku based daily and 4 hrs analyses on AUDUSD.
The_Good_Trader
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Retracement can be limited the area of 0.9000 level. After reaching there bouncing can be occured. If it breaks there, your zone is logical. Caution is essential. Thanks for the graph.
Dreem
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I completely agree with .9000 playing a roll however with the recent ease that the price has been moving through it I made the decision not to give it a huge amount of attention like normal. With that being said though....Caution is essential and that level could prove to make this trade invalid. Thanks for point that out though I appreciate it!
I had some similar attempt in WTI crude few days ago. It was a sht idea, and frankly spkn something like 2 hours after I opened the shorts i manually closed them, as I realised that it was not a trade matching my setup criterias, but only stg like a pure gutfeeling to go short on the 4 hrs chart as it seemed overbought.... So it is even more overbought now, trading more than 2,5 figure higher, closer to 101 usd :-).
So put it this way. Ask only two questions from yourself: 1. what is my precise trade setup for taking a short position (u might know it from your trading strategy). 2. Is the short setup really there on this chart and is it valid?
If u can answer these two questions within 8-10 seconds, and the answer for the second question is totally positive, then go short. If you feel like you have to look at this chart more, or you answer like "well, uhmmm, yes... Mmmm, aaamm, maybe, etc.", then just forget it and look for something more clean and obvious.
Ah, and one last thing. Never feel sorry for any missed trades, which you had no confidence with! Feel sorry for those that you did not enter, despite you had the clear, valid and confident setup.
Sry for being this long, but hope you found it useful.
P.s.: Maybe tomorrow I check my charts and will post an Ichimoku based daily and 4 hrs analyses on AUDUSD.