AUDUSD - consolidation patterns : Bullish Bat @ structure

FX:AUDUSD   Australian Dollar/U.S. Dollar
1367 13 34
This pair has been consolidating for pretty much the whole month of February, with a light tendency to break to the upside. Consolidation is a perfect area to look for harmonic (or should I say fibonacci) patterns and this is not an exception.

We are offered a bullish bat pattern that would complete in an area that has been proven to be support and resistance a couple of times in the recent past, hence a good area to look for a reversal.

Bat patterns usually offer quite decent RR ratios and we can see the same here :

TP1 : approx 1.5 RR for a 65 pips potential profit (stop loss 47 pips) with the entry @ 0.7089
TP2 : approx 2.2 RR for a 105 pips potential profit

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That R:R isn't even worth taking Nico
+1 Reply
He who does not honor the small, is not worth the big, a proverb we have in Dutch.... Anyway, everything that's over 1:1 is worth taking for me, but it all depends on your trading plan and everyone might have different requirements ;)
Reply Nico.Muselle
A risk profile of 3:1 ensures that you can lose 48% of trades and still return over 40% return MoM
Reply Nico.Muselle
with a maximum risk of 3%
I risk max 1% per trade and 5% overall (so I have maximum 5 trades on that have their stop loss not moved into profit at any single time). As a beginning trader with a small account, I think it is more important to make sure you preserve your capital first, before thinking about profits.
Reply Nico.Muselle
So no 500x leverage on every trade? oops
Hehe, nope ... 100:1 is largely sufficient for me :)
hi Nico, I agree with you I have also seen the same pattern
+1 Reply
Good eye buddy, thank god I'm not the only one seeing this :D
thanks for sharing. though I still favor selling :)
+1 Reply
Hey, you have to trade based on your personal analysis, so nothing wrong with that ! Good luck !
Hi, Nico. To Bat complition, it has to breake rising channel. I am not sure to take this trade in this case. Test to channel support line with 0,382 retracement could be possible.
+1 Reply
Retrace to the .382 is a winning trade for me ... So no reason not to take it :)
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