Sometimes it's tough: My Daily AUD/USD Swing
With the strong uptrend - and "strong" hardly seems enough to describe the trend the aussie has been in - I've been swing trading. This means that I wait for a pullback to a key level and buy into it. It's a funny feeling to buy weakness but remember in a swing trade it's a correction you're looking for just as long as the overall trend is intact.
Entering on a pullback is not a sure thing and certainly there are multiple levels of support that the pullback could finally rest upon. I rely on psychological level, Fibonacci levels, and ofcourse my 34ema Wave.
In this case I have a rising wedge which is currently being tested but just below this pattern support is the 34ema low. There is also 0.9100 and the 0.9050 psychological levels that should offer buying support.
In the meanwhile, the pullback has traveled within the Wave pretty far - but take a look at the areas I've circled on the chart: The previous pullback was pretty far into the Wave too. As long as the trend is up and intact, I'm looking for a swing entry long. This will change if prices trade below the 34ema low which is currently at 0.9040.
My chart was created with MT4 and the Autochartist Chart Pattern plug-in.
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Archived Comments (2)
Forex Blog: Chartology
I'm right with you on this view. I prefer dip buying now to breakouts. Breakout's have much more chance of loss-of-steam, while dips are entries that join price action that is just starting. (provided one's view is correct;))
....breakouts are WAY more fun to watch when you entered on a dip and you see your entry speeding away in the 'rearview mirror' ;-)