GBPAUD - Double Bottom Pullback

Mar 19, 2022

We have a double bottom pullback trade on the GBPAUD. What's so special about this trading setup? Well, on the higher timeframe, the Daily Chart, there is a Bullish Crab Pattern check back.

Although the formation is complete beyond the PRZ, it sits nicely at the level and acts as a new support level.

If you are familiar of the Crab Pattern, you should know that it is quite normal.

On the current timeframe, the 1-hourly chart, the market has a Double Bottom followed by a pullback. No doubt this gives the best Reward: Risk, it is also a high-risk trade as the probability of it hitting the stop-loss is high.

Before you ignore this trading setup, what if I tell you that the potential profit is 386pips, in fact, that might not even be the level that I would take any profit off, and just that it creates more than 5:1 of returns.

Now, would you be interested?

Mar 21, 2022

Note

Good Morning Traders. At this moment, I have not engaged in this trade. Although the Reward seems good but the reversal doesn't seems strong enough.

What a pity.