Continuation of Crab Pattern, Retracement Channel Completed at FR78.6%, Long AUDUSD, 31st October 2016


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AUDUSD H4, Rebounding Off from Major Rising Trendline

AUDUSD M15, Crab and Retracement Channel

Summarized Analysis, Trading Plan and Modification:
The price has rebounded off from a major rising trendline after a Crab was formed within a key support zone.
The price has then appreciated and break beyond FR100% of the Crab, signaling for the price to gain further and an opportunity to long by applying retracement channel strategy.
The price then retraced twice and completed a retracement channel and it resumed appreciation from FR78.6 of the retracement channel.
Long with 1/2 risk and stop loss was set 20 pips below FR88.6% of the retracement channel.
The trade was then partially closed as it has reached FR261.8% of the Crab which signals for exhaustion, and then fully closed after the price gained a little further and lost its momentum.
Results: Gain 5.9%

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