On the weekly timeframe, AUD/USD approached a previously tested resistance zone around 0.63926, marked by prior price interactions. On the 1-hour chart, the price broke out above this level, signaling bullish momentum. On the 15-minute chart, a backtest of the breakout level occurred, with the price retesting the 0.63926 zone, now acting as support, before continuing upward.
Trade Plan:
Entry: Entered a buy trade at 0.64072 after the backtest confirmation.
Take Profit (TP): Targeting 0.64352, aligning with the next significant resistance level.
Stop Loss (SL): Placed at 0.63926, just below the breakout level, to protect against a false breakout.
Risk-Reward Ratio (RR): The distance to TP is 280 pips (0.64352 - 0.64072), and the distance to SL is 146 pips (0.64072 - 0.63926), yielding an RR of approximately 1:1.9.
This AUD/USD trade capitalizes on a breakout and backtest strategy, offering a structured setup with a favorable risk-reward ratio for potential upside.
Trade Plan:
Entry: Entered a buy trade at 0.64072 after the backtest confirmation.
Take Profit (TP): Targeting 0.64352, aligning with the next significant resistance level.
Stop Loss (SL): Placed at 0.63926, just below the breakout level, to protect against a false breakout.
Risk-Reward Ratio (RR): The distance to TP is 280 pips (0.64352 - 0.64072), and the distance to SL is 146 pips (0.64072 - 0.63926), yielding an RR of approximately 1:1.9.
This AUD/USD trade capitalizes on a breakout and backtest strategy, offering a structured setup with a favorable risk-reward ratio for potential upside.
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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.
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.