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.
Cancelled: Sell AUD/USD Again
Update: We missed the boat on this move. The pair shot back up to as high as 8600 before dropping. I'm going to cancel my open order.
Wow! Another multi-year high! And of course I was stopped out of my earlier trade. I still believe this pair is currently "overbought" and look for a short-term correction. I'm basically trying to pick a top here near the psychological resistance of 8600, but I like the reward/risk ratio.
There is bearish divergence on the 4-hour chart where price has made a higher high while the oscillator has not.
I'm going to sell at 8610. My rationale for this entry is that the market will sweep out the stops placed at 8600 and then fade the upmove. My stop loss (SL) will be 8640. My profit target (PT) will be 8475.
