UPDATE #1: Hey guys, if anyone was still holding onto this trade. Then your Target #1 has been hit, stops can move to break even. This pair has started to consolidate for now. Have a GREAT WEEKEND EVERYONE ENJOY :)
Hello Traders,
Here we have a valid BULLISH Crab Pattern on FX:AUDUSD that is close to the completion point. Yes the market is clearly in a downtrend BUT we can expect some correction/pullback before continuing to go lower. According to my rules, since I do not see any setup for shorting this pair, I rather go long for now based on this particular setup and then short again after getting the correction/pullback. For Crab patterns the stop loss is placed 10 to 20 pips below the 200% extension level for XA leg.
I previously posted two ideas for going LONG on this same pair BUT both ideas were invalidated by the market. So you're probably thinking why would you LONG this pair again after 2 straight loses, well my simplest answer would be that I just have to FOLLOW MY RULES. Yes, there will be days when nothing is going right for you but if you believe in your strategy and you know that it has an overall positive outcome, than these 2- 3 losses do not matter. This I believe is the main barrier that many traders face BEFORE going on forward to become a SUCCESSFUL trader. Even if this trade turns out to be a loser, it wouldn't bother me at all.
One of the most important point that you can take from this is that, BACK-TESTING a particular strategy that fits your trading style, will give you a lot of confidence. This will allow you to NOT worry about small loses that are likely to occur along the way but it will also keep your emotions under control. Back-testing gives you the extra edge that you need in the markets over other traders.
NOTE: Since this is a counter-trend trade setup and now that I am aware of the probable chances of this setup being invalidated, I have decided to half my position size from what I normally trade with. I'll make sure to keep everyone up to date on this setup.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Good Luck :)
UPDATE #1: Hey guys, if anyone was still holding this trade. Then your Target #1 has been hit, stops can move to break even. This pair has started to consolidate for now. Have a GREAT WEEKEND EVERYONE ENJOY :)
EverythingForex
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Hey, bro. I don't know if you and I have the same crab but the crab I posted 3 days ago has been filled and I've been waiting and waiting patiently for it to start moving for 3 days now. And looks like it...just....might....do it now (crossing my fingers and hope I don't jinx it! And no, crossing my fingers is not part of my trading plan!).
moneymaking
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Hey EverythingForex, this is how my 4 hour crab pattern looks like on 60 min time frame:
EverythingForex
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Actually, there are 3 crab patterns on the 4Hr TF with 2 getting filled. I didn't see your crab (green one) before but yeah, your crab missed by 7 pips to getting filled IF prices don't get back down there. Which, I'm apologize for saying (I never like to wish anyone ill-will), I'm hoping prices keep moving up now since I am overall bullish on this pair. But even if prices do move back down to fill your crab, it still does not invalidate my 1Hr crab.
moneymaking
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Great work for finding all crab patterns completing close one another, All the BEST mate :)
EverythingForex
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Thanks but I like to check your posts because you and I agree a lot many times but you sometimes find stuff that agrees with my posts that I didn't see...like your crab. Keep up the good work!
moneymaking
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Hey Everything Forex, Thank you mate. I also like it when my ideas relate to other traders view about a certain currency pair :)
moneymaking
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UPDATE #2: Sorry for the late update guys. Just wanted to remind you all that, 2nd target has be reached. All positions are now CLOSED for this setup.
IvanLabrie
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Happens...a shame but well.
moneymaking
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Hey Ivan, yes but we don't expect the market to do exactly what we think it will do. It's part of the business :)