Monday, October 12, 2009

AUDUSD allows a quick long entry

Here on the hourly chart you can see how the AUDUSD allowed for a buy. When I see these setups I trade them. The risk is small. The range of this channel is only 60 pips so if it bounces back down from the top you won’t make a lot of pips. But depending on your philosophy, 20, 30, or so pips may be good. I’d prefer more. That means I’ll keep my stop at just over breakeven and lighten by a third at 50 pips. Remember, this pair is in an uptrend and broke above the psychological .90 level last week. I don’t like it breaking below trend lines on shorter term charts but we have no real evidence it’s heading down at this point. This could be a bull flag which would result in greater highs. Take the easy trades like this where you can set a tight stop. Trading is hard work and it’s nice to catch an easy one sometimes.

Here’s the trade on the hourly chart.
This type of trading may not be for you and in any case, as I've written often, this isn't a trading recommendation but rather a blog of how I trade.

© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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