The trade of the week once again came through higher timeframe research.
At market open on Sunday 9/22 all Australian Dollar pairs opened gap down. All were showing signs of bearish on the weekly timeframe having strong momentum after testing resistance. The one that interested me the most was the AUDCHF pair. This is what I saw on a 4 Hour chart at 9PM that evening:
There was a clear consolidation pattern that had just gaped down to break the cloud. The gap open also brought the Kijun Sen down to a level where it would go flat with the bottom of the consolidation. Classic price action with an Ichimoku level. But the confirmation did not stop there. Along with the weekly sentiment bearish that same $0.8602 level matched with the Daily Tenkan Sen and Senkou B:
The Daily was also holding the Senkou B top of the cloud which is another factor we call a Major Wave Pullback.
This was a trade with such price action, matching levels, and fitting with my trading strategies that I HAD to take it. Slowly, over the course of the week it finally go down to my take profit target of the Daily Kijun Sen.
With a risk of 26 pips and a Risk/Reward of over 6 to 1 I’d say it was pretty awesome for the market to leave such an obvious trade out there!