I made this trade around 6:50 AM PST and found a set up on the 1H chart. I use a technique called multi timeframe analysis which helps find the context by looking at multiple charts. The lower time frames today told me that the trend was lower. Therefore I had to go higher until I found a gap between two extreme levels.
I start from 5M and go up until I see a chart that fits my parameters as a day trader (focusing on trades that last 15M-4H). A gap in between two consolidation levels is an opportunity. I also confirmed the trend lower by looking at the higher timeframes.
I traded AUD/USD on a -1.30 lot size, capturing +41 pips and I made $521.30 today.
I made a continuation trade where I saw evidence that price had no respect for the 0.71500 level. The next psychological level I targeted was at the 0.7100 whole number. Bank orders and FX options tend to gravitate to these levels. I look at whole numbers and psychological levels as magnets to a price that is inevitable. That was the bet I was willing to make.
Many traders tend to put their take profit or manually close their positions right before these whole numbers so don't get too discouraged with the volatility (0.71100-0.71050). You must be patient and wait for the price to gravitate to the whole number.
Stay humble and never stop learning!
I start from 5M and go up until I see a chart that fits my parameters as a day trader (focusing on trades that last 15M-4H). A gap in between two consolidation levels is an opportunity. I also confirmed the trend lower by looking at the higher timeframes.
I traded AUD/USD on a -1.30 lot size, capturing +41 pips and I made $521.30 today.
I made a continuation trade where I saw evidence that price had no respect for the 0.71500 level. The next psychological level I targeted was at the 0.7100 whole number. Bank orders and FX options tend to gravitate to these levels. I look at whole numbers and psychological levels as magnets to a price that is inevitable. That was the bet I was willing to make.
Many traders tend to put their take profit or manually close their positions right before these whole numbers so don't get too discouraged with the volatility (0.71100-0.71050). You must be patient and wait for the price to gravitate to the whole number.
Stay humble and never stop learning!