Last week AU had a number of great opportunities amongst other pairs, each with decent R:R ratios. There was a long and a short which I'll go through here.
Here we have a small base with a strong move away indicating a great imbalance in supply and demand. On return price fell with red candles only before basing and falling again. I normally like to see red candles only but considering price engulfed the nearby supply and there was still room to rally, there was still opportunity.
The engulf on the H1 could also be seen on the 15m with a nice looking demand. The R:R potential was great as you can see in the image below:
With a later entry than planned than I didn't make as was on offer but it's another example of how SD can be traded.
After the long trade, price rallied up to supply with pure green candles (ignore the label that says red in the image) which is exactly what we like to see.
A 5m engulf gave us the heads up that price was likely to continue falling so the trade was confirmed as below:
Another decent profit from a simple trade setup.
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