AUDUSD - channeling opportunity both for Long and Short
AUDUSD is in a very visible trading range. In such conditions, Stochastics can be of great help.
In this case, just wait for the price to enter one of these zones. It would be best if the Stochastics is in the overbought or oversold zone, but the price will be enough.
One option for entering is to wait for a trigger bar and then pay with a wider stop loss. A bit more aggressive and I think better in this situation would be to just buy the level.
Wait for the price to enter the zones and just enter with 1 ATR stop or 2 if you want to be safer.
If you measure on the chart you'd see that the 1 ATR stop played out fairly well in most of the situations. There are no sure things here, Folks, but I often like to observe what worked well in the left part of the chart. Often the same zones work, in some charts the same entry bar repeats - the price is fractal.
Target can be the other zone, I'd personally scale out a bit around the middle.
For the longer-term oriented traders - why not scale out half at the opposite zone and leave a runner.
My target as usual would be the 161% extension of the recent pullback which will be the ~ 0.6470 level. (Go to the 4 Hour chart and you will see we are in a downtrend). From the Upper zone to there you have some 140 pips. Imagine entering with just a 1 ATR and your runner hitting the second target. Even on half position that is 70 points.
The ATR as we speak is around 10 so here we speak about some 1 to 7-8 RR trade overall.
These are the ones I hunt for. The probability for the runners is low, but with 1 to 7, you just take the odds.
In this case, just wait for the price to enter one of these zones. It would be best if the Stochastics is in the overbought or oversold zone, but the price will be enough.
One option for entering is to wait for a trigger bar and then pay with a wider stop loss. A bit more aggressive and I think better in this situation would be to just buy the level.
Wait for the price to enter the zones and just enter with 1 ATR stop or 2 if you want to be safer.
If you measure on the chart you'd see that the 1 ATR stop played out fairly well in most of the situations. There are no sure things here, Folks, but I often like to observe what worked well in the left part of the chart. Often the same zones work, in some charts the same entry bar repeats - the price is fractal.
Target can be the other zone, I'd personally scale out a bit around the middle.
For the longer-term oriented traders - why not scale out half at the opposite zone and leave a runner.
My target as usual would be the 161% extension of the recent pullback which will be the ~ 0.6470 level. (Go to the 4 Hour chart and you will see we are in a downtrend). From the Upper zone to there you have some 140 pips. Imagine entering with just a 1 ATR and your runner hitting the second target. Even on half position that is 70 points.
The ATR as we speak is around 10 so here we speak about some 1 to 7-8 RR trade overall.
These are the ones I hunt for. The probability for the runners is low, but with 1 to 7, you just take the odds.