After seeing The Working Trader's idea I figured I could attemp a pair trade in this pair, to take advantage of the interest rate differential in both EURUSD short and AUDUSD long.
The entry will be a market order, but I'd have to see how the markets open tomorrow, I will update the chart by then.
For now, keep in mind that for pair trades, I aim to open a big position on each side, which thanks to the pair trade's more 'market neutral' stance, lets me use no stop loss and be somewhat safe, at least, as long as the ratio chart's setup is valid (in this case EURAUD).
The advantages are multiple, check out The Working Trader's post in 'related ideas' for more information, I detailed it there.
For now, if you want to enter this trade, find out the ADR value (atr of 1,5,10 and 20 bars added together and divided by 4). Once you know this you can calculate position size in base on your desired risk, per day.
You will have to watch the trade, unless you're deep in profit, it won't be a set and forget deal.
Good luck, and wait for the update regarding entry tomorrow.
Target is initially the time at mode one, but it can retrace the whole terminal wedge (it should for it to be valid, and it has to occur in 1/3-1/4 the time it took to be formed).
Cheers,
Ivan.
The entry will be a market order, but I'd have to see how the markets open tomorrow, I will update the chart by then.
For now, keep in mind that for pair trades, I aim to open a big position on each side, which thanks to the pair trade's more 'market neutral' stance, lets me use no stop loss and be somewhat safe, at least, as long as the ratio chart's setup is valid (in this case EURAUD).
The advantages are multiple, check out The Working Trader's post in 'related ideas' for more information, I detailed it there.
For now, if you want to enter this trade, find out the ADR value (atr of 1,5,10 and 20 bars added together and divided by 4). Once you know this you can calculate position size in base on your desired risk, per day.
You will have to watch the trade, unless you're deep in profit, it won't be a set and forget deal.
Good luck, and wait for the update regarding entry tomorrow.
Target is initially the time at mode one, but it can retrace the whole terminal wedge (it should for it to be valid, and it has to occur in 1/3-1/4 the time it took to be formed).
Cheers,
Ivan.
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