Making money with the GBPAUD
Good morning Dynamic Traders
Halfway through the week now and I hope your all having a profitable week so far.
Today I would like to run through how we might have been able to make some money from the GBPAUD. On the day chart below you will see that I have drawn in 2 lines which make a channel. You will notice that the top channel line has been tagged twice with price making a third attempt which is exactly what has happened with the bottom channel line.
In real time we would only have had a 2 occasions to possibly make money. They would be the price increase from the last time price tagged the bottom channel line. The second occasion would be the current downtrend.
You will also notice on the day chart that price appears to be slowing down. If we have a closer look by using the 4hour chart below, you can see that we potentially have a reversal candlestick formation forming (providing things stay the same throughout the day). If you have a look at the right hand side of the chart you will notice that this is happening at a RN. We also have MACD convergence jumping in on the action, and long with a previous S/R line help to explain why price is slowing down.
These signs are also indicating that price may have the potential to start climbing again, but we will have to wait and see for that! However we can definitely conclude that price will slow down, and that a sensible action to take if you are indeed in a short trade is to tighten your stops and lock in your profits.
Remember to always carry out your own analysis, and have faith in it!
Carpe Diem
Richard Monnery
Halfway through the week now and I hope your all having a profitable week so far.
Today I would like to run through how we might have been able to make some money from the GBPAUD. On the day chart below you will see that I have drawn in 2 lines which make a channel. You will notice that the top channel line has been tagged twice with price making a third attempt which is exactly what has happened with the bottom channel line.
In real time we would only have had a 2 occasions to possibly make money. They would be the price increase from the last time price tagged the bottom channel line. The second occasion would be the current downtrend.
You will also notice on the day chart that price appears to be slowing down. If we have a closer look by using the 4hour chart below, you can see that we potentially have a reversal candlestick formation forming (providing things stay the same throughout the day). If you have a look at the right hand side of the chart you will notice that this is happening at a RN. We also have MACD convergence jumping in on the action, and long with a previous S/R line help to explain why price is slowing down.
These signs are also indicating that price may have the potential to start climbing again, but we will have to wait and see for that! However we can definitely conclude that price will slow down, and that a sensible action to take if you are indeed in a short trade is to tighten your stops and lock in your profits.
Remember to always carry out your own analysis, and have faith in it!
Carpe Diem
Richard Monnery
Labels: GBPAUD
posted by Richard Monnery @ 10:20
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