AB=CD harmonic pattern forming on the daily TF of GBP/AUD

FX:GBPAUD   British Pound / Australian Dollar
An AB=CD harmonic pattern seems to be almost done forming on the daily time frame of GBP/AUD             , I've set my target at the previous resistance area of point B in the pattern, and my stop loss comfortably set above the last swing high, allowing for a potential risk/reward of 3:1. Can go down to the lower time frames to look for a candlestick pattern etc. for a more precise entry.
Hi Eliass, i saw a short set up also but didn't want to get into this trade before all the economic events of today such as the Bank of England inflation hearing, Draghi & Yellen. I often struggle with placing trades before a economic news because of the potential volatility so I decided to my rule is not to place a trade before an economic news release, however, I feel I am missing good opportunities.
How do you deal with economic events and how does it influence your trading ?
eliass.r DerekUweri71
Hi Derek, I understand where you're coming from, in fact, when I trade on time frames under the 4 hour TF, i'm sure to either: wait for the news to happen, get out before the news if I feel it wont do my position any favours, or lock in profit and "ride out" the news. Because this trade was taken on the Daily TF, I should hope ive given the trade enough breathing space so that the news wont be able to cause enough volatility to take me out. Hope that helps
Hi Eliass, thanks for the prompt reply. I totally agree with you and that is my thinking also. I just wanted to hear it from the horses mouth. Whilst I look at the daily TF, I trade off the 1 hour charts so I am usually exposed to the volatility of the economic news and it's becoming a bit of an issue for me. I would say it is better to trade off the Daily charts then.

On another point. Are you based in the UK? What were you doing up at 3a.m !!!!??
DerekUweri71 DerekUweri71
I just looked at the calendar for today and Carney, Draghi and Yellen are scheduled to speak again today. I suspect this will push GBP further down which is good for your trade but will make it difficult for me to enter now.
eliass.r DerekUweri71
it didn't do much today because they were testifying and had already spoken before
eliass.r DerekUweri71
Well Derek, the Daily chart takes a lot more patience and waiting around, but its good to look at for more key levels and potential opportunities that may not be presenting its self on other time frames. I must mention though that I actually look at the 1 hour time frame maybe more so than the daily, but dont be under the impression that the hourly TF is only for intra day trading. most of my hourly TF trades are swing trades and held for at least the best part of 2 days
eliass.r DerekUweri71
LOL late nights and early mornings. Yep based in London, UK - yourself?
You are operating in a different time zone..... I'm based in London, UK. My office is around Angel so perhaps we'll meet for a drink one day.

The higher the time frame the more reliable but smaller time frames provide more opportunities. I don't look at anything less than the 1H. (Daily, 4H &1H) Whichever time frame provides the best opportunity or is clearer. I can look at the daily and not see anything and then look at the 4H & see a good set up.

What was your trigger to get into the GBPAUD trade?

I don't like it when there is no confluence in the charts. We expect GBPAUD to sell off and GBPJPY is bullish. Ummmh. That makes me feel like one of them is not going to do the expected. What's your take on that?
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