Hey everyone it's Johan here from TradingWalk and today I want to show you this AUDCAD trade! We had a buy and a sell.
As you probably see here we're not picking bottoms and that's the theme ofthis video you don't need to pick bottoms.
Picking bottoms will often costyou money because you'll get stopped out a lot and I hope you get some value ofthe techniques I'm going to share in this video so looking at this chart herewhat made me take the decision to buy here? Well, applying the Trend Pulse Pro indicator you can see that we had two buysignals down here and I took action on the second buy signal here because Imissed the first one and that's okay if you miss a first buy signal if youbelieve the trend is strong and price will continue up you can take entryon the second buy signal as well and I entered on a limited order turn out very well.
I want to show you now what made me take this decision to trade and I will alsodiscuss these signals over here why I didn't act on them.
So zooming out toa big picture time frame, so for this chart we looked at the one hour andzooming out to the four hour we can see that we are in a pretty strong uptrendhere and it's in this area we just looked at so what made me take thedecision to buy was first we had a resistant level and I've talked about thisbefore the more times you see a resistant level being tested the morelikely it's going to break so we tested this one two three timesI took the trade based on the price action tell me that we would see a breakon the fourth test because this level is now used it's too obvious to manytraders see it the big money will most likely trade against theaverage trader that's one of the reasons why I took this trade onemore technique is one that I talk about sometimes it's the break of previouslows and as you can see here we had this low right here and the second lowright here and when we see the break of those lows and immediately turn back upagain that's an indication that there's buying pressure basically people buyingstop losses down here.
The thing why I didn't like this buy trade for exampleright here and basically a break of three the reason why I didn't like thatis because this price action right here it's to V-type I talked about it beforein previous videos you want to see rounding off bottoms that's exactly whatwe see here where I took my trade it's basically you see this rounding off thebottom up here it's to V-type move and you can see that you could have madesome money off this move from the signal but immediately turn back down again thesame for these two sell signals here the reason why you don't want to take themis because they're at support levels you could have traded on pretty successfullyscalping them and taking quick profits short that's completely fine, good forthat, but you always want to trade in the direction of the trend to have thehighest probability of success so even though those two short trades was prettygood we want to trade in the direction of the trend to have the highestprobability of success we can see that well we had the rounding of the bottomhere and we're starting to and we're starting to make higher highs and higherlows now and we get the first signal I missed that one that's okayI just have to be patient and wait for another signal when I get the signal Iput in my entry limit order at the same signal and enter my stop loss and take profitand the reason for placing my take profit in this area is because I expect the break of the resistant level I then placed mytake profit based on the distance between the entry and my stop-lossso for every dollar I risk I made five so risk reward one to five a very goodtrade completely fine to not pick bottoms as long as you trade in thedirection of the trend have the probability in your favorfollow these strategies and stay disciplined I hope you find it valuableif you did please leave a like on this video and please subscribe to my channel.
I really appreciate it.
Thank you so much for watching to your success!.