Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
AUDUSD has formed an ABCD pattern in H4 chart:
But have to wait for this four hour candle to close. Close around 0.9600 level will complete that ABCD pattern.
For this case I like to find a long setup in shorter time frames in order to have a tight stop loss and my profit target would be 0.9700 area, 38.2 fibo retracement.
Wait for some signs of a reversal and then go long.
UPDATE: There are two approaches here for taking these trade calls, aggressive and conservative.
Aggressive traders will calculate AB and CD and will take the trade at the D point with 10pips tolerance,
In this example AB is 240pips and you might went long at 0.9610, this approach has got some advantages and some problems, the best advantage is that you are risking smaller money and setting tight stops but the problem is that you wouldn’t wait for a confirmation and maybe there won’t be a reversal at D!
Conservative traders will wait for a confirmation (candle closes beyond or below that level) and then they take their trades, in this case you would be more confident about your trade but have to set bigger stops versus aggressive play.
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