AUDUSD: What To Do For Target Two's

Oct 6, 2014

Obviously the bulk of this trade has already played out but following up on yesterday's blog post and this mornings training lesson. I wanted to take a look at how I actively manage a trade. One this I continue to tell the traders I work with is to "think like the other trader" so seeing how I'm in a bullish position, what I like to do is break down the chart and look for where I would want to get involved if I were on the bearish side.

As you can see I've predicted 2 potential reversal zones, the first being at a zone that features inside resistance looking left along with some Fibonacci confluence (127.2 extension & 161.8 inversion). The higher level features a 161.8 extension and an equal measured harmonic move.

So where is the right place to exit? Well price action will let me know.

For the original idea behind the trade check out yesterday's blog post.
ratiotradingmentor.com/2014/10/05/its-got-to-come-eventually/