Very inspiring Price Action Day conference in Warsaw is over. It would seem that trading as many years as I do and the last few based only on the Price Action method there is not much new to learn. Fortunately, there is a new motivation to write and share with my approach to trading, similar but yet different from what Zbigniew Wieczorek presents, or Krzysztof Wiwatowski. Until my next holiday you can expect daily entries in the Price Action strategy, where I will use my conservative rules of entry, as well as the concept of Zbigniew’s windows.
The pair of Australian dollar to New Zealand’s has come to a key resistance and consolidates the fourth session under it. If you get a clear sell signal you should consider short. However, if the resistance is broken, you can start to observe the pair on the H4 chart and look for opportunities to enter longs consistent with the strong rising momentum of the pair. One must remember, however, that there is another strong resistance nearby, which only broken will open the way to much higher growth.
Aussie has been dropping since the opening of a session in Australia and has just come to key support that has been tested in the past even a dozen times. It is definitely worthwhile to watch the pair and, as with the previous instrument, play depending on what happens. A strong buy signal on D1- we go long with target in vicinity of the nearest resistance. However, if support is broken, I will look for shorts on the H4 chart.
Another pair with the Australian dollar. It is important to remember not to involve too much capital on one pair in one direction. Max 2 positions at 2% risk or 3 at 1% risk. However, if they are, for example, 2 shorts and one long, then you can play.
Going back to the pair it’s currently on the key resistance. And again the scenario is identical. Reflecting on it and selling signal from Price Action (Pin Bar, Fakey, Inside Bar) on D1 chart, it’s a short game. However, if you hit the top and the buy signal from H4 in case of re-test the level from above, I will play long.
Eurodolar is closed in quite narrow consolidation. You can play inside it short around resistance and long when close to support, but interesting will be when the pair breaks out from the consolidation and that’s what I’m waiting for. Also pay attention to the bearish gap and unsuccessful attempt to close it. But the window is quite small and it is not worth playing it, especially since nearby there is a support.
I wanted to pay attention to this pair only because of the very interesting buy signal that appeared during testing support. After few bearish candles the following completely engulfed all of them and created a Outside Bar formation. Placing a buy limit order at 50% of the mother candle allowed to open long with Stop Loss at about 90 pips, with a Take Profit of 500 pips, which allows you to play according to the strategy Price Action with risk to reward 4: 1.