Profit By Forex Trading In Upcoming Economic Catastrophe
Markets go up, markets go down! When you know how to trade them, it makes no difference whether we’re in an economic boom or economic catastrophe.
I know the headline was a bit of a grabber but I took a leave out of mainstream media for that one, hope you don’t mind hehe!
There is going to be an economic catastrophe, negative interest rates and money printing can’t go on forever but that’s for another article.
I wanted to bring to you a beautiful trade example on the AUD/USD and the understanding of how you can trade the ups and downs of these markets simply by understanding the weekly and daily charts and predicting the trends of the upcoming economic catastrophe.
Most of you reading this probably work full time, perhaps have a family and enjoy some sort of social life. So where would you find the time to trade the markets. When I talk to most people about trading they automatically think of a guy sitting in front of 10 screens clicking away. But the reality can be very different. Most retail traders think all the money is in trading the 60 minute, 15 minute or even dare I say the 5 minute time frame.
In this article, I want to show you that by understanding the weekly and daily charts, you can make all the returns you need with a full-time job, a social life and a family. (By the way, I had all of those, the only one I don’t have now is a job because I don’t call trading a job, it is more of a lifestyle)
Below is a weekly view of AUD/USD dating back to 2000 all the way to present day.
This is a weekly view, you can take your time in the evening to review this chart in conjunction with the daily to identify ranges, trends and trades to earn all the profits you need whether we’re in boom or doom.
From the weekly, we can gauge major areas of supply and demand, trend bias and potential trend change or upcoming trends of economic catastrophe.
Notice how through 2003 to 2006 the price of AUD/USD bounced between the 50% and 38.2% Fibonacci and now present day the Aussie is repeating the same pattern, markets repeat patterns.
Also notice how the 50% is very strong resistance at 0.7927.
Below is the Daily view of AUD/USD where we now look at precise entries and targets, all of this is end of day trading.
Once we have put structure into the weekly to gauge major areas of supply and demand with directional bias we can look on the daily for precise entries, quite often we will have various plans for trading a particular currency or commodity in Plan A, Plan B and Plan C scenario just in case plan A fails.
Trade short AUD/USD @ 0.7850 with a 50 pip stop and target of 0.7460
This is a 390 pip target and a 7.8 risk to reward
I hear you say Lee but it is currently 260 Pips away from the entry, but think about it, this is a high probability low risk reward and there are seven major and minors you can follow plus the major cross pairs. All you need is one trade a month.
There may be a stop hunt through to the weekly 50% which you will have to be prepared for and look to re-enter if this does happen, you can see from the weekly how price has spiked up to 0.7927 on numerous occasions
You will notice from the chart that we must first go long and break a strong trend line with three touches, if this happens, it sets up our Plan B trade of a Break and retest of the trend line. Once we have our supply and demand areas mapped out, trading can be done with such simplicity and ease.
Plan C, what happens if it breaks short? Revert to the weekly, look at what happened last time it broke through the 38.2%, straight down to the 23.6% where it found demand and back up to the 38.2%.
I sincerely hope this article has helped you in some small way, the central banks are playing Russian roulette with your economic prosperity as they pump and dump the markets, learn the rules so you can play the game.
Have a wonderful and beautiful day!
Live from the Platinum Trading Floor
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