Potential AUDUSD Bullish Fibonacci Move

8 dic 2016

I'm reading The Harmonic Trader by Scott Carney and I'm on the part about Fibonacci retracements. AUDUSD is bullish on the 60 minute chart and after a big sell off it stopped right on the 0.786retracement. Looking left there is also structure to support this, so my trade looks like this:

BUY @ 0.7448 (for me this was next bar market @ 9am PST)
STOP @ 0.7427
SELL @ 0.7500

Risk: 21pips
Reward: 52pips

I placed my stop @ 0.7427 because it's just below the 0.786 retracement and for now I'm thinking that if after a bullish bar closed bouncing off the 0.786 if it reverses and goes below, this means my idea is invalid. Not a bad risk-reward ratio either!

Some news today about US Household Change in Net Worth for Q3, but given the non-farms payroll report last week I think we'll be fine.

8 dic 2016

Trade attivo

Also forgot to mention that RSI shows us @ being underbought despite my forgetting to change my # of periods back to 14.

9 dic 2016

Nota

Moved my stop up to 0.7450 for a risk free trade since it should be protected by structure on the 15m chart

9 dic 2016

Trade chiuso: stop raggiunto

After moving my stop up it looks like it's been hit. Not a big deal though, since it's Friday. Bummer that price action made it to just 5 pips away from my target before retracing, but that's life!