Technicals | Aug 20 2013
By the TechWizard
All good traders need to have one thing (patience) and depending on the set up and the correct risk reward then a good trade with a decent risk reward set up can come to you.
A selling signal was generated last night in the AUD/USD, with correct risk reward and set up.
Here are the conditions for the trade:
- Macd is bearish ( both white and yellow line are below the 0-line)
- Price action has rebounded up into the sell zone (between 2 moving averages)
- A second close reversal bar was generated (made new high, but close below the second previous bar, trapping a lot of traders long)
The Trade the Techwizard took today was:
Entry 0.9130
Stop 0.9240 (above yesterday's High)
Take profit (between 0.8800-0.8870) will look for a signal that a bottom is in .
So you are risking 110 pips to make 300+
Technical analysis is not a crystal ball but a windsock that points the direction. Hopefully the direction will change, says the WIz.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.