Hi all,
Looking for your thoughts/comments on an entry I have placed. Brand new to forex and after some uneducated cowboy scalping didnt work out i decided i better get some structure in pretty quick! Armed with a few speckles of knowledge i cracked open the AUDCAD chart and start plotting some lines.
Nothing to technical about this trade but it looked like it would be worth a shot.
Criteria:
Clearly respecting trend lines.
respected the .236 Fib retrace before briefly resuming.
RSI sitting at 50 looking to move lower.
Price action also telling me to sell.
Heading down toward a key support line previously tested, thus my stop is just above it.
Shooting for 160 pips over 6-8 days, 100 pip stop. Approx 1:1.5 R/R
Would love to hear from you guys if theres anything you would have done differently or even if you would have left the trade alone completely? Thinking perhaps i could have moved my stop about 30 pips closer but that can be done later.
Cheers!
AUD/CAD in recent weeks, has been experienced many reformation with a gradual Down trend that sellers down price increases obtained the lowest price of 1.01133.Currently price in weekly  and H4 time frames is under 5-day moving average that shows descending of price during the net candles. In Weekly time frame of this currency pair, the price is closed by passing the ascending trend line( made of 9 bottom prices)  and breaking of it under the 5- day moving average and there is the possibility of more descends.
With formation of Shooting star candlestick pattern in daily time frame, there is a warning for Vulnerability of uptrend and formation of a Top price. As it is obvious in the picture below, there is Gartley pattern between the bottom price of 0.91723 and the top price of 1.03486 that there is a potential for ceasing of price from D point of this pattern. Generally until the price level of 1.02611 is preserved, price will have the potential for reformation and descending.
[B]Technical analysis of AUD/CAD dated 2014.05.15[/B]
