Major Movers
AUD/USD TL Bounce
March 2, 2010
Jeff Watkins (Fx-Enzo)
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Chart Analysis
Today's highlighted major mover currency pair is the AUD/USD currency pair focusing on the smaller time frames of the 60 and 15 minute charts.
Our trading opportunity today was part of a growing trend, where the market bounced at the up trend line and gave us a tradable candlestick formation.
Although we could have traded this formation from the 60 minute chart and profited over 50 pips; the real profit potential on this trade came from the 15 minute chart.
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Chart Analysis
Now, trading the setup from the 15 minute chart not only gave us an original entry with better equity management, but it also gave us a second entry for traders who missed the first wave up.
Had you taken the first entry your stop would have been around 30 pips and your limit about 60-75. Where as had we traded the second entry our risk would have been about 50 pips and the potential profit and equal 50.
Regardless of wether you took the first or second entry; you were able to gain profit in excess of 50 pips!
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Analysis
In hind sight, we know there was an opportunity at hand, but the setup and the entry depended solely on the trader.
Trading this trend line bounce was a fairly simple setup for those educated on how the market works.
Without education, you might not have had the chance to enter the market at all, and if you had your profit potential and risk factors were most likely not close to those educated traders who took the trade!
All of the analysis is done using the MTI 4.0 charting software, practice these, and other great strategies for FREE, by downloading a 14 day trial of MTI 4.0 charting.
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