Yesterday, we pointed to downside potential after the distribution pattern (I'll link the idea below). However, the AUDUSD never traded below the last support at 0.70 so there was no signal given to enter a short. The following Fed talks that lead to a USD rally would have trapped traders who entered prematurely. Traders who remained patient and waited for a confirmed break of the support were not affected.
This scenario shows perfectly why waiting for confirmation and why not trading before the actual signal occured is of great importance.
This scenario shows perfectly why waiting for confirmation and why not trading before the actual signal occured is of great importance.
Note
A break above 0.72 could very likely complete the Fibonacci sequence and send prices higher to 0.73
I have been trading for 15 years!
> Trend Rider indicator: tradeciety.com/trend-rider-indicator/
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> Trend Rider indicator: tradeciety.com/trend-rider-indicator/
> Free weekly trading webinar: tradeciety.com/webinar/
> Free blog: tradeciety.com/blog
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I have been trading for 15 years!
> Trend Rider indicator: tradeciety.com/trend-rider-indicator/
> Free weekly trading webinar: tradeciety.com/webinar/
> Free blog: tradeciety.com/blog
> Trend Rider indicator: tradeciety.com/trend-rider-indicator/
> Free weekly trading webinar: tradeciety.com/webinar/
> Free blog: tradeciety.com/blog
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.