AUD Waiting for confirmation - Market Barometer Update

16 Şub 2017

Hi guys, this is more of a lesson for those of you who use the Market Barometer. Here is a screen of what the chart looked like before I turned all of the other currencies off:



This is a 4 hour view. Notice the 2 different trend lines. The AUD broke below the first, but has not punched through the second (long term trend line). Before opening a trade, wait for the currency to clear 'all' trend lines (support or resistance if long). Breaking below the short term trend 'will' create a move, but we are more interested in the larger moves (i.e. better risk/reward, etc...).

This is not investment advice, just my opinion(s). Please trade accordingly.

Trade safe and keep an eye on news.

16 Şub 2017

Not

We are below the Trend Line now. We should see continued AUD weakness.

16 Şub 2017

Not

Expect a short term bounce or pull back, then AUD will continue to weaken (i.e. use the pull back to get a better entry price):

16 Şub 2017

Not

When the short term hits 50ish on the pull back, that's a good time to enter a trade 'selling' the AUD.

16 Şub 2017

Not

Just like when you are in a trend trade. Prices never go in a straight line, but you know where they will end up. This is a same idea. The larger time frames tell you where you are headed and the short time frame let you know when to expect pull backs and consolidations along the way.