Are any other traders sick of analysts whose view is that a currency “could fluctuate”? When you read or hear “on the one hand…..but on the other hand” the response has to be “thanks Einstein”, because what the analyst is really saying is that they have no clue, or no cojones – or both. However, traders don’t need a directional view to trade where they recognise a good reward to risk set up. The EUR/AUD 4-hour chart is a current example:
Traders will select their own indicator or signal, but I like to keep it simple. Here’s a 186 pip trading range, with a clearly defined inflection point at 1.4450. Frankly, I’m hoping EUR/AUD stays range bound for weeks, as every time it crosses the midpoint it fulfils my trading plan – a clearly defined signal, with a tight stop and a higher reward to risk ratio. With the pair breaking below 1.4450, I sell at 1.4445, with a stop loss at 1.4464, target 1.4375 (not too greedy).
Reward to risk is 70/19, or better than 3.5/1. The real beauty is if this trade pays off, and the support at 1.4366 holds, there’s another trade as EUR/AUD crosses or fails at the inflection point at 1.4450. Happy days! - See more at: http://www.forexnews.com/blog/2013/10/04/top-trade-idea-october-4th-2013-euraud/#sthash.IZX0Texw.dpuf
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