SIMPLE STRUCTURE READING
0.7556 is the best place to short aud
when it pulls back to the structure.
I have published many similar Ideas b4.
If you know how to trade this structure.
you are there to make profits.
1.Find a structure which is violated.
2.Wait for price to come back and retest
3.Look for Price Action when you trade.
what I want to share is the STEPS to trade the pull back
and pls take note of the STEP 3:
Watch Price Action when you trade.
moves as what I expected.
QQ Group: 609224828
The steps are:
Step 1. Identify a broken trend. Jack can watch a stock/currency for months before identifying a new trade.
Step 2. Calculate/identify the pullback zone. In this case, Jack used a pin bar top to identify short sellers. More common is the 0.6128 pullback calculation. Identify lower (for shorting) bound of the short zone. Enter this value into your trading system to send you an alert when the price hits this level. These are 4 hour charts. It may take days or weeks for this to happen It may not happen. If it does, be ready to trade based on price action. Note in this and the NZDUSD, the predicted course of events was to form a head and shoulders pattern. For NZDUSD the price entered the short zone 9 days after the original post. The calculation of the pullback is always based on the 0.6182 ratio. Study the right side of the graph and practice this until you can do this on any broken chart.
Step 3. Trade based on the price action. When you have received the trade alert that your stock is entering the trading zone,
watch it for a while on a 1-5-15 minute trends and trade based on the price action. You need the stop loss above this short zone (or below a long trade) if it doesn't go as planned. You can also trade when it enters here with a stop loss.
Each idea is a probability about how to make the trade at the peak (or minimum) after a change in trend direction. If you get this right 65% of the time, you will do great. The other 35% you will never trade or will stop loss out of.