AUDUSD Pre PBoC Decision

This area circled on the five minute chart for AUDUSD caught my attention today. See the small area of small wicki candles. I remember seeing them and thinking ‘thats gonna shoot up!’ Before I could place the trade it did, on the (unscheduled) announcement by the People’s Bank of China.

audusd5
AUDUSD 5 Minute

 

Whenever I see that I always expect a decent move. I guess a small pocket of demand with buyers and sellers coming together briefly, then the game of ‘musical chairs’ ends and the Boom!

But one trade that got away. Risk would have been minimal with a tight stop a pip or two below the dark blue area. Not bad for a quick 50 odd pips.

There is a risk it could shoot either way of course. Hence a tight stop.

Trading Hidden Divergences – Video Tutorial

Divergences can provide very important leading signals. Hidden Divergence is an important trend continuation signal that tells that the retracement is over and the original trend will resume soon.

Hidden divergences can be found on any standard oscillator like stochastic, MACD,  RSI, Traders Dynamic Index etc. If you are not sure about hidden divergences and can’t identify them on the charts, you should watch this 1 hour video tutorial that explains in detail how to identify hidden divergence and how to trade them!