I just wanted to bring attention to the new Twitter function that has been installed at the top of the blog. I think this is a great tool as I can call out ideas, level and trades in real time as they develop. I put on 2 trades last night in AUD and FESX Futures (Eurostoxx) that were both documented and profitable. If you like my work and this commentary, I urge you to sign up and follow. A big reason why I decided to start this blog was to communicate with other Asian Traders and share ideas- please get involved.
Here is the AUD 5min trade I took last night. I noticed that AUD was struggling at 9950/9960 in European Trade with bearish divergences forming. The previous day AUD had made a new momentum low (60mins timeframe) thus our trade is to sell the first rally. It became clear that AUD was in a rising wedge and breaks of this pattern would lead to a retest of 98c. I got short on the break of the pattern at 9910 and I put this all on the twitter feed. I covered the position somewhat prematurely at 9830.
AUDUSD 5mins:
I use all timeframes in my trading and I believe this is important for profitability. The key is understanding the setup and how best to trade the pattern in front of you. Sometimes there will be opportunities for establishing longer term positions at key turning points- e.g. if AUD closes below this 98c level on the 60mins/Daily. However, these trades come along rarely and until they do, I like to trade 5min charts to pay rent and exploit the smaller moves.
As it stands, I think we may actually be in a great Double bottom area. The 98c support level dropped but there has been a sharp recovery. If we can regain 9860 I think this is a possible swing buy up to 9960 minimum. Note the bigger picture is bearish thus if this bounce fails and we see a 60min close below 98c, get short and join the momentum down for a bigger swing
AUDUSD 5mins:
