AUD Waiting for confirmation - Market Barometer Update
Hi guys, this is more of a lesson for those of you who use the Market Barometer. Here is a screen of what the chart looked like before I turned all of the other currencies off:
This is a 4 hour view. Notice the 2 different trend lines. The AUD broke below the first, but has not punched through the second (long term trend line). Before opening a trade, wait for the currency to clear 'all' trend lines (support or resistance if long). Breaking below the short term trend 'will' create a move, but we are more interested in the larger moves (i.e. better risk/reward, etc...).
This is not investment advice, just my opinion(s). Please trade accordingly.
Trade safe and keep an eye on news.
This is a 4 hour view. Notice the 2 different trend lines. The AUD broke below the first, but has not punched through the second (long term trend line). Before opening a trade, wait for the currency to clear 'all' trend lines (support or resistance if long). Breaking below the short term trend 'will' create a move, but we are more interested in the larger moves (i.e. better risk/reward, etc...).
This is not investment advice, just my opinion(s). Please trade accordingly.
Trade safe and keep an eye on news.
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We are below the Trend Line now. We should see continued AUD weakness.
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Expect a short term bounce or pull back, then AUD will continue to weaken (i.e. use the pull back to get a better entry price):
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When the short term hits 50ish on the pull back, that's a good time to enter a trade 'selling' the AUD.
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Just like when you are in a trend trade. Prices never go in a straight line, but you know where they will end up. This is a same idea. The larger time frames tell you where you are headed and the short time frame let you know when to expect pull backs and consolidations along the way.
