The Aussie offered up a nice trade overnight with a greater than 3:1 reward to risk ratio setup. The EUR and GBP also looked good to trade at the same time, but did not meet our 3:1 R:R minimum.
The AUD made lower highs toward the end of the Asian session, then dropped sharply as the UK traders began their day. After a pullback forming another lower swing high, followed by a very bearish candle an entry is taken with a stop just above the lower swing high. We remove the risk from the trade as soon as is prudent to do so and protect our profits by moving our “take profit” down as the trade progresses.
We close the trade after our Target 2 is reached to end the week. Never be greedy and always protect your profits…the market can reverse in a blink.
It’s been a wonderful week for trading with many crystal clear setups.
Enjoy your weekend!