Yesterday, I tweeted about $AUDUSD ‘s structure prepare. Here is the updated chart. I expected market to fill the single prints between 7074 and 7143.
$AUDUSD looking at the potential of repairing the structure between 7074/7143
— Gavin (@tradergav) Nov. 16 at 11:13 AM
Updated chart
Looking ahead, here are some zones I am watching to do business.
Just thought I would post a chart here. This is a text book style support-resistance setup. Trade the obvious?
Have a look at larger time frame to set your bias. This setup might be provide you a good entry.
While my main focus is in Futures trading, I am still keep an eye on spot FX for swing trading ideas. Just thought I would share some FX charts which I am watching.
I hope these charts help. You can always click on the charts to view in original size.
AUDUSD:
Still looking at buy on dips.
EURUSD:
Looking to buy at dips
USDCHF
Looking at potential short around 0.9120
GBPAUD
Looking at potential short around 1.7030
Here is the quick chart review of spot GOLD XAUUSD. You can also find last week’s chart review here.
The best way to understand the movement is to look at the charts in multiple time frame. The charts basically explain everything. I will just try to give brief descriptions.
On Thursday, Gold broke away from resistance level 1347.83, the immediate target is seen at 1392/98.
Here is the Daily Chart with key levels marked.
Looking into 4-hour time frame, we can find some details about the price movement. Last week, we saw the break of down trend line, and also the resistance level around 1316.22. The best opportunity,and more conservative way to enter a long trade is to wait for the pull back to the broken resistance level. As shown in the chart, price respected the level 1316.22, and made another run to the upside after retesting the level.
Here is the 4-hour chart with key levels marked.
Here is the H1 charts with more detailed trend lines. I won’t go into too much details about the trend lines, probably in other posts. Just to show that there are trading opportunities around the identified support and resistance levels.
That’s it. Just a quick chart review. Hope it helps or at least, the lines did not confuse you.
From the desk of TraderGav.com
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Just a quick post of one of the trades I made yesterday. I thought it might provide some educational value to my now 13 readers.
I went long of USDJPY around mid London session yesterday. My entry was not the best I would like to have. I saw a small consolidation cluster around 96.75 , and it, in fact, broke the inner trend line. (Refer to the blue bold line in the chart below). My view was, the consolidation above inner trend line might potentially be a launch pad for a upward movement. Well, it dipped a couples of hours later, but never go beyond 50% retracement of the current swing. Stop loss was not triggered.
In retrospect, the dipped after my entry was indeed a retest of another broken down trend line and support level. In hindsight, this is a better entry, but hey,that’s trading, and everything looks better in hindsight, no?
Target is set at 97.40. This is the price projection measured by using the Fibonacci extension of 161.8, golden ratio, of the lowest swing low to the break of inner trend line. The target was achieved during Tuesday Asian morning session.
2nd target is set at measured move up to around 97.80 which is also a resistance level.
Here is the 1-hour chart of USDJPY.
I suggest to have a look at Steve’s NBT posts for the concepts of price projections for target setting.
That’s it for now. Have a good trading week ahead!
From the desk of TraderGav.com
First of all, AUDUSD approached 0.9130/40 resistance level. This is a daily level, and price reacted and immediately pulled back to intraday (hourly) support level 0.9085. If you managed to get in short position at the first test of 9130 level, the setup should give you around 1 R at 0.9085. (Unless you used a ridiculous tight stop, then you might get more of it..but, heck, it doesn’t make too much sense to me)
Here is the hour chart of AUDUSD
In case you’ve missed the first train of selling, I would prefer to wait for the break of 9085 and enter at the pull back to this level. It can be a rounded retest or immediate retest (read my butt kiss setup).
In addition, if you noticed starting from mid-0.89 down to mid-0.88 there was an accumulation/distribution pattern, and also can bee seen as multiple taps formation. Refer to the purple dash lines in the chart. 0.8943 was the decision level for this pattern, once it was broken, pull back to this level provided a valid long entry. With target set at slightly above 90 cents, it provided 1:2 risk reward ratio.
Our good friend, Steve at NoBrainertrades.com wrote an awesome blog post yesterday The Decision Making Plan – An Alternative Process to Trade Entry. In his PREP decision making process, the 1st action before starting a position is to identify profit target, identify where we are getting out of the trade. It makes total sense to me. Spend some time and read it.
We know price will normally react at the level, but the question is always, how far will it go. So, it is important to know where to enter a trade, it is even more important to have price projection, i.e where do you expect price to reach from here.
Hope you have a great week so far.
From the desk of TraderGav.com
