EUR/AUD

And this is the outcome of the bearish bar. It was just another opportunity to buy at its close. Not to sell.

In strong trends, when you see big fat bars against the trend like that one, chances are that it is an opportunity to get back IN the trend.

I placed a buy-stop order above the top of the small 30min candle, and that's how I faded the bar and the channel line break. The market soon reversed and rose above the little flag, filling my buy order and carrying me with it. Buy/Sell stop orders are a good way to enter or re-enter when you have a strong trend. You place them at a key point and wait for the market to prove the trend is still there. And it did.

I provide a zoom-in of what I did on the 30min timeframe, as that bear 4H bar closed. (30min is the shortest timeframe I trade on)

Most of my trend trading takes place with buy/sell stop orders. They work great in trending markets.

Excellent trading ItsATrap. Excellent indeed.

A very complex wave [iv] alternates with simple wave [ii].
Now completed an ED as part of wave (b), expecting a swift decline on wave (c) towards 1.4520, ( it moves faster than I post)
before resuming uptrend.

Woke up to see that the 1st half of the trade hit TP at 2/X risk but the other half got stopped out at break even on this spike down. I was expecting a stronger move up to let the other half bring in pips too. Oh well. Now flat on this pair.

On the daily chart, the pair has formed a strong spike move up followed by a tight uptrending channel. This channel now just been broken. When such channels break for real, price tends to pull back to at least the beginning of the channel.

Now is not the time to enter short or long, IMO. Wait for things to calm down. Let the market show its hand.

Will history repeat itself?

IMHO, EURAUD seems sidelined

Looks like we may be nearing the end of what appears to be another 2-legged correction down. A correction in the uptrend.

projected end of the potential 2-leg correction is around 1.4490ish

Interesting. Just got filled on another long above a small flag. I thought it would go a bit further down. Let's see how it plays out.

I have exited my long now.

I used the same method as yesterday to get in long. Chart for info. Once again, I saw 2 legs down (blue squares), which I expected was a corrective move down in the uptrend.

I then waited for a good place to place a buy-stop order near the end of the 2nd leg down.

I saw the small doji in the 30min timeframe. This is essentially a small flag (if you zoomed in further, you would see it clearly as a small rectangular flag.

But we do not know how much further the market will retrace. So, place a BUY stop order just above the flag and wait for the market to turn around and fill it.
30mins later, the market turned around and filled the order. I exited at ~2x risk, (at the EMA).

I now expect the market to retrace further down a bit and will watch for further signs to get back in LONG. I do not thing that the uptrend is over. I am only interested in LONGS at the moment.

Git filled on another buy stop above the highs of the hourly bar that just ended. Let's see this play out

Amazing run on that cross pair and I thank you General Akbar and Anil and everyone who saw this coming. Excellent charting ladies and gentlemen and this is far from an easy pair to figure out.

Glad you're enjoying it

Yes, as a cross, the EUR/AUD can be tricky at times. But it has nice moves!

Diamonds are forever, they say

...But in trading, diamonds are meant to be broken! Most of today's action (time-wise) was contained within this diamond. It has broken to the upside but the diamond is not a very high quality one. Price will hopefully follow the orange path, but with a poor quality diamond I will not be surprised to see price return to break the downside and only then likely bounce up more.

Correction [iv] terminated right down the limit of bottom ii-iv channel line at 1.4501, now reversal to be confirmed.
Therefore, invalidation or SL placed at channel break with upside potential of a 5th wave towards 1.5045 for a medium term setup.


http://www.forexfactory.com/showthre...00#post8316500

Morning all. Here's a review of yesterday's trade and what I will be waiting to see today.

Yesterday, I got 95 pips out of the long trade with half of my position. The other half got stopped out at break-even when the market reversed its spike up and crashed down. So the diamond, as I was 'afraid' because it was of poor quality, broke both long and short. But, with proper management, both bulls and bears can make money, and the last few hours on this pair display this very well I think.

As for me, I am still a bull on this pair. I will be looking for bullish price action set-ups a bit below or the recent lows, i.e. at or a bit below 1.45 , but probably above 1.4450.

There is now a long setup on the hourly charts, but I am not taking it as I don't like its looks very much. I am looking at other pairs at the moment, such as EURUSD where I just got filled on a short play on the daily chart (that's posted in the EURUSD thread)

A broader view of the situation, looking at this 4H chart.

The pair remains in an uptrend. We are currently inside a volatile range which we have to assume is just a pause in the overall uptrend.

On the basis of this assumption, do you want to be looking for shorts, especially when we are at the bottom of a range in an uptrend? No. You want to be looking for LONGS, at or near the bottom of this range.
You do not want to take positions around the middle of the range. You want longs, near the bottom.

We are at or near the bottom now, but we lack decent price action. We lack a decent signal. So I stay out. And wait. Even if I miss a good signal, if the uptrend continues, it will most likely give me a second signal, and then a third, and so on.