#GBPAUD: Bullish Engulfing on Upward Trend Line with Divergence
After a successful SHORT trade of the previous swing :
Today we are blessed to have a well defined Bullish Engulfing appearing on upward trend line (in Red) supported by RSI divergence.
Short time momentum for a reversal seems not to be huge (engulfing size is not so big) but upward trend line (red) has been well respected so far and indicates me that it worth the shot.
Price can also be attracted lower by the major support at 1.8638 with confluence of 0.5 fibonacci, so keep an eye on it, it can produce a good second opportunity if it doesn't work on this one.
We will wait for today close to set the entry point and trigger the LONG position.
Please, feel free to comment and share.
We are social trader after all !
MisterTrader
=============================================
Trading rules are :
1. Trades are taken in 1, 2 or 3 units depending the situation.
2. If 90 percent of first target is reached I move stop loss to break-even.
3. If 90 percent of first target is reached without triggering entry I cancel the trade.
4. About targets : this is not an arbitrary approach, because every situation evolves different, targets will be adjusted according how price behave on key levels.
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My 5 tips to keep in mind that will save you from losing :
- Make sure to have enough Momentum on your side
- Use powerful confluences (BRN, major S/R, Div, Trend-lines, Fibos)
- Have enough space to reach 2 Ratio:Reward at least, avoid tricky noise situations
- Good price action (pinbar, inside bar etc..) at bottom/top for a good price
- Enjoy your wins and learn from your losses
Wish you great success !
Today we are blessed to have a well defined Bullish Engulfing appearing on upward trend line (in Red) supported by RSI divergence.
Short time momentum for a reversal seems not to be huge (engulfing size is not so big) but upward trend line (red) has been well respected so far and indicates me that it worth the shot.
Price can also be attracted lower by the major support at 1.8638 with confluence of 0.5 fibonacci, so keep an eye on it, it can produce a good second opportunity if it doesn't work on this one.
We will wait for today close to set the entry point and trigger the LONG position.
Please, feel free to comment and share.
We are social trader after all !
MisterTrader
=============================================
Trading rules are :
1. Trades are taken in 1, 2 or 3 units depending the situation.
2. If 90 percent of first target is reached I move stop loss to break-even.
3. If 90 percent of first target is reached without triggering entry I cancel the trade.
4. About targets : this is not an arbitrary approach, because every situation evolves different, targets will be adjusted according how price behave on key levels.
------------------------------------------------------------------------
My 5 tips to keep in mind that will save you from losing :
- Make sure to have enough Momentum on your side
- Use powerful confluences (BRN, major S/R, Div, Trend-lines, Fibos)
- Have enough space to reach 2 Ratio:Reward at least, avoid tricky noise situations
- Good price action (pinbar, inside bar etc..) at bottom/top for a good price
- Enjoy your wins and learn from your losses
Wish you great success !
