I’ve been talking a lot about the GBPAUD lately (maybe because it is one of the currency pairs that I feel most comfortable with – at the moment)… last week anyway.
Last tuesday I talked about The SF Box and how you can apply it to the GBPAUD to determine when to start looking for trade opportunities (which is what defines a clear market condition).
Then on thursday I talked about the profit potential of the GBPAUD… it has more than 800 pips before we hit the next LT level…
I also talked about my trading plan, what the market needed to do in order to open my trade.
Now, since last thursday the market has been painfully slow, turtle slow… But it pays to be patient, it pays to follow your plan.
Anatomy of my Long Signal
Here is my hourly chart:
Let me ask you one question:
When would you open your trade here?
C’mon, look at the chart again and tell me when would you open your trade.
A retracement to the main support level is a possibility, but that’s not what I’m looking for at the moment.
Right now, since it is trading in a very clear bullish market condition, I’d feel comfortable taking breakout trades.
So I’m waiting for the market to break the short term range. My buy stop order is resting at 1.6805.
I love the idea about using a small SL here, just below the same ST resistance level.
And since the next long term resistance level is too far away (where I usually set my take profit levels), I’ll have an open target, but let me tell you, I’m not expecting to make less than 300 pips on this trade.
Now the market needs to do two things:
- Break the short term range
- Continue in the same direction
And I’m done hehe
What do you think about my long signal?
Do you feel comfortable trading the GBPAUD at the moment?
Are you going to trade it?
Let me know in the comment section.