The GBPAUD chart below was posted on social media @AidanFX August 11 2021 showing the possible bullish patterns. Blue bullish pattern triggered BUYS at the XA 0.886% Fib. retracement level. More evidence the pair could push higher was a bullish divergence pattern (red) also formed in the same area where the XA 0.886% level triggered buyers. Both these patterns combined together gave me confidence that the pair could rally higher. A trader should always have multiple strategies all lined up before entering a trade. Never trade off 1 simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup.
GBPAUD 1 Hour Chart August 11 2021
Seeing that GBPAUD was responding to the bullish patterns and pushing higher a trade was entered August 12 2021 at 1.8843 with Stop Loss at 1.8768 and targeting the first target at 1.8918 (minimum target) and the second target at 1.8993.
GBPAUD 1 Hour Chart August 12 2021
GBPAUD 1 Hour Chart August 18 2021
GBPAUD eventually moves higher and on August 18 2021 price hit the 1:2 RR target at 1.8993 from the 1.8843 entry for a move of +150 pips. If you followed me on social media @AidanFX you too could have caught the GBPAUD move higher. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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