AUDCHF recent price history whilst in oversold Cond.

10 בדצמ׳

It's the big banks who are ultimately buying very low and riding the bigger waves.

Here in the daily chart for AUDCHF and its recent price history whilst generally getting hammered lower into the oversold condition.

Money can be made deep and low in price here, but it will only work if you get it deeply oversold around recent price history, where it has popped. Other supporting confluence of why this needs to turnaround in price is also needed. For example, what is the path of least resistance on other timeframes.

Its probably a trade for more risk and more reward, if that sounds like you then check out the daily chart of AUDCHF.

The way to trade it apart from the timing, is to bet with a small lot size, you don't want to come under notice betting for example 5 Lots, you will probably get hammered lower if you get in at the wrong time.

10 בדצמ׳

הערה

* I may refer to this chart as being a weekly. It's definitely a daily.
A weekly chart can be used for deep RSI-oversold instruments, track how low the recent historical levels got to in oversold and there will probably be your cue-to-buy into it. Timing will be difficult on weekly timeframes, you would look for supporting timeframes daily, 4hr, 2hr, 1hr and 15 minute RSI to be in a similar oversold state to get that extra confirmation.
Bigger profit gains can be made on weekly but timing is harder.
Always, tiny lot size for example o.1. Pull the trade correctly with long gains over a week to months & turn a smaller 0.1 lots risk into 5k profit.

10 בדצמ׳

הערה

When precisely do you pull the trigger on a long position when trading a heavily oversold instrument for example a currency like AUDCHF at present.

A.
Heavily oversold it needs to be the heavier the better in fact but you would not want it to go much lower than recent 2 year history of oversold examples, it may tank lower.
You watch buying coming back into it with bullish 1minute pin candles, volume is starting to rise with the increased buyers, but we don't pull the trigger until the RSI line, which has moved from very low oversold & is now crossing upwards through 30 or 20 if you prefer 80/20.

So that's the answer, ultimately this is an RSI trade and I was taught this way. Wait until RSI crossed up on 30 & pull the trigger once you are happy its held the 30 level. 70 level for Shorts. It's even more important that 70 is held with shorts, generally more difficult to trade shorts. Same thing for Stochastic's but it uses 80 overbought and 20 oversold.

11 בדצמ׳

עסקה פעילה

AUDCHF very overbought right now.
Some buying happening.
Big potential swing to the upside with massive RR, risky however, small lot size and add to position.

11 בדצמ׳

הערה

very oversold that should read def not overbought