The anatomy of a developing trade – short AUDUSD
- Posted by PeterLBrandt
- on November 13th, 2012
AUDUSD chart construction is becoming remarkable
I have never used this blog to track my actions in an individual market over a period of time. I will attempt to do so in the $AUDUSD in the period ahead. If the market unfolds as I think it might, I will explain my entry (leverage, sizing, entry and trade management decisions) and exit activity. If the market does not unfold the way I think it might, well, then this was
The weekly AUDUSD chart displays a 16-month symmetrical triangle. While this pattern could become either continuation or reversal in nature, right now I have a slight bias toward the short side of the market. Nevertheless, I would go with an upside breakout.
The daily chart displays a possible 4-month H&S top pattern. That the left shoulder is almost of equal height to the head does not disqualify this pattern as a H&S top.
The right shoulder of the daily H&S top displays a possible wedge or channel pattern. A close below the Nov. 9 low would complete this wedge and indicate that the right shoulder high is in place.
I will be monitoring the daily and intraday graphs. I will short a close below the Nov. 9 low, risking 1% of my trading capital (in other words, per $1 million of trading capital I will risk $10,000). If this trade unfolds I will provide more detail.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Peter Brandt entered the commodity trading business in 1976 with ContiCommodity Services, a division of Continental Grain Company. From his start in the commodity industry, Peter's goal was to trade proprietary funds. But, he first needed to learn the business. More »