Live Trade – AUD/USD (4 hour chart)

Filed under: Live Trades |

Well, I have once again been sucked into taking a trade on the intraday charts, this time on the AUD/USD 4-hour chart – and once again it has not come off. I really should stick to trading off of the daily charts for a while, as my record on the intraday charts this year has been horrendous. In fact, had I traded only off of the daily charts this year, I would be carrying a YTD profit of over 9%, but as it is, I am at around breakeven – quite a difference!

 

Figure 1.

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the AUD/USD forex currency pair (the pair for the Australian dollar and the United States dollar). What you can see here is that a nice support/resistance level has formed (which actually goes back further if you zoom out on this chart), and price has once again reached this area – thus we are looking out for any bearish price action signals.

 

Figure 2.

Figure 2.

If you now look at Figure 2, you will see the 4-hour chart for the same AUD/USD currency pair. What you will see here is a bearish pin bar right our aforementioned support/resistance zone. It was here that I put an order in to go short at a 50% retracement of the pin bar, with a stop loss set just a few pips above the high of the pin bar, and a great risk-reward target of 1:5 (which made the trade worth the risk in my mind). The order was filled beautifully, but the pair has since moved up and the stop loss has been met. I intend to test the 1-hour and 4 -hour timeframes (along with the daily timeframe) for trades on Forex Tester in the coming weeks to find out which are most profitable – and I will update you on those as and when I have some results.

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