In this Currency Trading video, I will take a look at last week’s FREE trading bias pick and how the trade should have been managed using the RSI trading strategy. The RSI trading strategy is a FREE strategy that I give out to everyone that signs up to get the FREE Weekly Trading Bias.
Currency Trading – A Rules-Based Example
The FREE Currency Trading Bias pick last week ended up being basically a breakeven trade. The rules-based approach that I teach traders helps to reduce the risk in a trade once the instrument has moved in the favor of the trader by the stop-loss amount. Here what that means, if the trader is using a 20 pip stop-loss then once the price has moved 20 pips in the favor of the trade. The trader then moves their stop loss to breakeven plus 2 pips. This technique is not executed sometime, but instead the same way each time a trade is placed.
Currency Trading – Longer-Term Outlook
The Aussie Dollar has a potential for a long term currency trading opportunity. In this video, I show how the consolidation pattern 2 years ago played out. The current consolidation looks the same but in reverse. The consolidation from 2 years ago was making lower highs and the current consolidation is making higher lows. If the Aussie can break above the new consolidation high there is a chance that Aussie could reset the lower edge of the past consolidation. The potential is a several hundred of pips. The Aussie is definitely a currency pair I will be watching over the next few months.
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