Hello Traders!
This will be my first case study as we observer AUD/USD going into September.
We will be working with the monthly time frame as this we were the bank's trade. They do not trade on the lower timeframes like the 1min, 5min, 15min, 30min, and 1h.
All markets are fractal, which means all time frames display the same setups on all time frames just in larger or smaller price action.
Here I have two zones marked out, premium and discount. I got these ranges by measuring the most recent and dynamic price range with a Fibonacci tool.
Anything below equilibrium is a discount and anything above is a premium.
Banks are more likely to buy at a discount.
Banks are more likely to sell at a premium.
Since we are trading within the discounted area of the price range we are looking for buying opportunities.
We are looking at the monthly timeframe so each candle represents one month of trading data.
Price has traded off a monthly order block and created another buying opportunity at the propulsion block.
This block itself is also an oder block that touches the initial one.
We do not want to see this propulsion block mean threshold traded through. This means 50% of the candle's body range should not be traded through and respected.
Now that price has come down into that order block(propulsion block) we look at lower timeframes to see
if the price action will give an entry to go long.
We will dive into the lower timeframes to see more details on what price action has done once it hit that level
0.71628.
This will be my first case study as we observer AUD/USD going into September.
We will be working with the monthly time frame as this we were the bank's trade. They do not trade on the lower timeframes like the 1min, 5min, 15min, 30min, and 1h.
All markets are fractal, which means all time frames display the same setups on all time frames just in larger or smaller price action.
Here I have two zones marked out, premium and discount. I got these ranges by measuring the most recent and dynamic price range with a Fibonacci tool.
Anything below equilibrium is a discount and anything above is a premium.
Banks are more likely to buy at a discount.
Banks are more likely to sell at a premium.
Since we are trading within the discounted area of the price range we are looking for buying opportunities.
We are looking at the monthly timeframe so each candle represents one month of trading data.
Price has traded off a monthly order block and created another buying opportunity at the propulsion block.
This block itself is also an oder block that touches the initial one.
We do not want to see this propulsion block mean threshold traded through. This means 50% of the candle's body range should not be traded through and respected.
Now that price has come down into that order block(propulsion block) we look at lower timeframes to see
if the price action will give an entry to go long.
We will dive into the lower timeframes to see more details on what price action has done once it hit that level
0.71628.
