I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Buy AUD/USD
The pair is trading near the 8200 handle, a nice psychological support level. On the daily chart, there's hidden bullish divergence where price has made a lower or flat low, while the oscillator has made a lower low. It's ugly but I call it as I see it.
On the 8-hour chart, this pair has dropped back tot he bottom of its trading range. It looks to be make-or-break time with 8170 being the only support left before this pair possibly plummets. I don't think it will happen. Price has pretty much hovered around 8200 while the oscillator has slowly risen creating another ugly looking bullish divergence.
There's also bullish divergence on the 4-hour chart. Price looks to be testing its most recent high but with the oscillator forming a higher low, it doesn't look like there will be enough sellers to break this support.
I'm going to sell at the fresh market price of .8195. My stop loss (SL) will be .8155, a little bit below .8170. My profit target (PT) will be .8300. I will move my stop to breakeven once my unrealized profits matches my risk.
Buy AUD/USD @ 8195 | SL: 8155 | PT: 8300
