After being flat for more about a week and a half (partly due to my poor start to the month and the need for a break, and partly due to the fact that many of the pairs I watch have been undergoing trend reversals, which may be at least partly to blame for my poor start), I've taken a position in the market tonight.

My poison of choice?  AUD/USD.

After breaking through the down trendline on the daily chart (indicated by the red line in the 4 hour chart below) and establishing a new swing high, the pair has pulled back to a rising trendline and formed a double bottom on the 4 hour.  Price appears to be respecting the rising trendline and double bottom, so I've entered a long order with the expectation that buyers will continue to push the pair up.

My intial stoploss is 10 pips below the double bottom, recent swing low, and rising trendline.  The markets will likely quiet down towards the middle of the week for Christmas, but I may get some good movement over the next couple of days and hope to move cash out half of my position at 1R and move my stop on the other half of my position to breakeven by Tuesday night.

• Long Entry: 0.6832
• Initial Stoploss: 0.6755

 

AUD/USD has been trending strongly down on the daily chart.  The pair has been moving down quickly, but today we got a pullback.  Since the daily is showing a pullback, I'm looking at the 4 hour chart for a good entry.  We're approaching a trendline on the 4 hour chart, and the current candle has made a new low, so I'm going to look to enter if the low is broken.  My stoploss will be a few pips above the last candle's high.  I'll move my stop to break-even as soon as the trade moves 1R in my favor, and after that, I'll trail my stop above swing highs.

The important thing to remember is that I'm trading in the direction of the prevailing trend on the daily chart, so the odds are with me.  Also, if I should get stopped out before my trade moves into profit, I'll employ the Jacko's Anti-Hedge method (see prior post), to get back in the trade if the trend resumes.

• Sell Stop Entry - 0.6377
• Initial Stop Loss - 0.6535 (158 pips)