Potential AUDUSD Bullish Fibonacci Move
I'm reading The Harmonic Trader by Scott Carney and I'm on the part about Fibonacci retracements. AUDUSD is bullish on the 60 minute chart and after a big sell off it stopped right on the 0.786retracement. Looking left there is also structure to support this, so my trade looks like this:
BUY @ 0.7448 (for me this was next bar market @ 9am PST)
STOP @ 0.7427
SELL @ 0.7500
Risk: 21pips
Reward: 52pips
I placed my stop @ 0.7427 because it's just below the 0.786 retracement and for now I'm thinking that if after a bullish bar closed bouncing off the 0.786 if it reverses and goes below, this means my idea is invalid. Not a bad risk-reward ratio either!
Some news today about US Household Change in Net Worth for Q3, but given the non-farms payroll report last week I think we'll be fine.
BUY @ 0.7448 (for me this was next bar market @ 9am PST)
STOP @ 0.7427
SELL @ 0.7500
Risk: 21pips
Reward: 52pips
I placed my stop @ 0.7427 because it's just below the 0.786 retracement and for now I'm thinking that if after a bullish bar closed bouncing off the 0.786 if it reverses and goes below, this means my idea is invalid. Not a bad risk-reward ratio either!
Some news today about US Household Change in Net Worth for Q3, but given the non-farms payroll report last week I think we'll be fine.
Trade active:
Also forgot to mention that RSI shows us @ being underbought despite my forgetting to change my # of periods back to 14.
Comment:
Moved my stop up to 0.7450 for a risk free trade since it should be protected by structure on the 15m chart
Trade closed: stop reached:
After moving my stop up it looks like it's been hit. Not a big deal though, since it's Friday. Bummer that price action made it to just 5 pips away from my target before retracing, but that's life!