I posted this trade live on Twitter at the London Open. It was a long AUDUSD trade from daily demand.
One of the ideas that makes this setup so powerful is it’s at the origin of the initial move up.
So why did I draw my demand zone as shown, and not encompass the full swing low on the chart above? Well, if we drill down to the 15 minute chart and find the zone in early February (below), it’s possible to narrow down the zone and reduce the risk to only 20 pips – not bad for a daily setup!
The setup would have netted a maximum of 46 pips so far, but my intentions were to take greater than 1:3 risk:reward or at worst a breakeven. This is real trading, so I intend to show winners, loser and breakevens. We’ll see how it plays out…