AUD/USD Short Reversal
I just took a short reversal trade on AUD/USD. Below you will find a description of the trade and a live trade video.
Daily Chart Trading
Daily chart trading is one of the most efficient ways to trade Forex. Unlike small time frame trading Daily charts require very little monitoring time. You can trade daily charts effectively even if you can only check your charts a few times a day. The reason for this is because you can see reversals forming on daily charts days before the trade actually triggers. A new candle forms every 24 hours so it is not as if trades are over quickly.
The trade below formed on Friday which means I had the whole weekend to plan for this trade. So if you have limited time to trade you may want to consider trading the daily charts.
The image below shows what this trade looked like last Friday
As you can see AUD/USD was primed for a reversal.
After a strong Bullish preceding trend a large indecision candle formed on top of the 1.0580-1.0620 resistance area.
On Monday the Bears took control of price and pushed down past my 1.0520 entry trigger…. the rest can be seen in the video.