GBPAUD – Swing Trade

– This swing trade will (hopefully) be short and sweet, although quite risky as we’re trading within a range
– The main reason for the trade is the bearish engulfing pattern and swing trade pattern – so I’ll be targeting the 1.46 area to take a quick profit
– To increase the reward/risk ratio I’ll set up a sell-limit order around the 38.2% fibs level (from the daily range)
– I risk not getting filled at all, but if I entered beneath the low of the candle it would only be a 1:1 which I’ve never been comfortable with anyway
– Although all charts agree to being bearish they leave a lot of room for any price gains before changing to a more bullish view – if in doubt, go without!
* Swing Trade rules have been taken from Marc Rivalland on Swing Trading where he combines Dow theory with his modified Gann Swing chart.

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