POSSIBLE 4:1 RISK/REWARD ON AUDCAD
I had this currency pair on my watch list for this week after analysing the WEEKLY chart, and whilst looking through the DAILY time frame I spotted a potential long trade.
I spotted a pattern I have just started to test out, you have 3 bars involved. In this instance we see a good pullback to previous structure, the first bar looks like a potential low test bar, then the bar after it is a high test bar but the interesting thing about it, the second bar fills the rest of the low test bar body. The third bar then has to either be a low test buyer bar, or an engulfing buyer bar.
I will make sure at 10pm tonight to check that this bar finishes as an engulfing buyer bar.
Couple of details to add, I currently have to trades open on this currency pair only risking 1% each trade. I have my 1:1 target where the first blue line is, my second target is the 2nd blue line beyond the first which price has previously been before, making the trade a potential 4:1.
Side Note- These are all my opinions, please do not take my advice as the be all and end all, I am an amateur FOREX trader trying to learn about the markets.
I spotted a pattern I have just started to test out, you have 3 bars involved. In this instance we see a good pullback to previous structure, the first bar looks like a potential low test bar, then the bar after it is a high test bar but the interesting thing about it, the second bar fills the rest of the low test bar body. The third bar then has to either be a low test buyer bar, or an engulfing buyer bar.
I will make sure at 10pm tonight to check that this bar finishes as an engulfing buyer bar.
Couple of details to add, I currently have to trades open on this currency pair only risking 1% each trade. I have my 1:1 target where the first blue line is, my second target is the 2nd blue line beyond the first which price has previously been before, making the trade a potential 4:1.
Side Note- These are all my opinions, please do not take my advice as the be all and end all, I am an amateur FOREX trader trying to learn about the markets.