Hi traders! We have seen the buyers show AUD love this week on AUDUSD. For me, I've not traded this pair in a couple of months. My rules for my setup have not completed in awhile, but hopefully, that will change.
Let's talk about why this could be such an amazing buying opportunity!
1) Price is trending up.
If you are a trend trader this is the perfect setup for you. A trend trading system works well when price is creating higher highs and higher lows. This is the creation of an uptrend or development of increased prices.
2) We love discounts!
When price is trending up the idea is to buy low or as stock traders say, buy the dip! In order for that to happen, we must wait for a pullback a.k.a. a retracement.
A pullback is a discount in price before price increases again. You my friend want to profit when price makes it's way back up.
For example, I'm going to sit on my hands to observe when price will decrease to my estimation zone. My estimation zone is a simple rectangle that highlights an area of exchange rates where I desire price to show me a buying opportunity in this uptrend.
I'd love to know where you'd place you structure to buy😉
3)The risk to reward is amazing!
I'm a FOREX MOM who loves to keep trading simple. So, i swing trade and keep my target profits simple. My goal here is to trade back to the high and up past the high to 0.69155(my personal target. It's ok if yours are different).
My first RR is 1.65. My second RR is 2.37
A quick tip for you if you're a swing trader like me, prepare to hold the trade for a few days, maybe a week or so. This way, you do't over trade the pair.
How to manage the trade?
1) Price may not pullback right away, but the entry and stop loss will stay the same. Unless price makes new highs and lows, this is the setup.
2. If all rules are met, it will be TRADE TIME!!! I'll personally move trail my stop loss when price reaches 75% of my TP.
I'm interested to know how you'll manage your trades😊
Welp, thanks for reading my quick analysis and let's pray the trade goes well. Happy trading!
Hi Shaquan, I've personally been looking at this pair on the weekly and I've been seeing a sell coz price has been dropping for quite some time and also coz the last LL was broken and its now retracing. I feel like taking buys now would be a counter trend trading. Please let me know what you think.
ShaquanLopez
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@Bell_23, Yes, on the weekly timeframe price is still trending up. However, the daily is still retracing, still creating highs and lows. Technically, yes, this is a countertrend trade. The question is, would you sell now or continue trading the retracement?
Bell_23
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@Shenell17, I had set a pending order at 0.67687 and I was triggered in on 15 November while I was away. I have been in the profit side with a max pips of about 200 pips but today its been on the negatives. Its disappointing but I'll just let it do its thing coz its still valid.