Friday, May 6, 2011

Another Example of How I Use the Trade Focus Numbers


On May 2nd, someone asked me what I thought about the AUDUSD, and I responded at 11.49 pm PST as follows, and attached my chart:

Trend is still up as you can see on the H4-W1 TFs but since we have 3+ consecutive lower TFs in red (M5-H1), I will confidently take a short trade with the 38.2 - 61.8% FR level as target as long as the AUD continues to weaken on the CSM.



AUDUSD had been a sell below 1.0880 from my previous post 196.


By 7.15 am PST on May 3rd this was my update:
PA made it to the 50% FR level @ 1.0845 (missing the exact point by just 2 pips) but still good for 50+ pips from the point of my post. 


By 10.27 pm PST same day, May 3rd I had another update:
PA finally made it to and beyond the 61.8% FR level @ 1.0788 for additional 50+ pips. PA is retracing now but more downside seem possible.



I said, "but more downside seem possible," and AUDUSD ultimately dropped to 1.0535 by yesterday!!!

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