Nico.Muselle
Long

AUDUSD - consolidation patterns : Bullish Bat @ structure

FX:AUDUSD   Australian Dollar/U.S. Dollar
1376 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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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.
snapshot
+1 Reply
Retrace to the .382 is a winning trade for me ... So no reason not to take it :)
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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 !
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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
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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 ;)
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Gekko.uk Nico.Muselle
A risk profile of 3:1 ensures that you can lose 48% of trades and still return over 40% return MoM
Reply
Gekko.uk Nico.Muselle
with a maximum risk of 3%
Reply
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