Trading GBPAUD retracement this morning nets 52 pips of profit. The first signal was the TradersHelpDesk ADX magenta peak on the 180 minute chart.
Trading GBPAUD Retracement Off Higher Timeframe
Knowing the 180 minute chart indicated a retracement to the ATR, the 12 minute chart is used for entry. First, price must flip the ATR from red to blue. It did. Then price must retest the now blue ATR on diverging volume. It did. I entered at 1.8641. A glance at the 45 minute indicated there was room for profits before getting to the ATR on that timeframe.
Price did go up and was flipping the ATR with a potential congestion dot appearing at 1.8704 so a profit target was set for 1.8700. However, just a few pips before the profit target was hit, the 3 minute indicated buying divergence and an overbought status. Instead of allowing profits to dissipate with a retracement on the 3 minute chart, I locked in profits. A trader’s job is to take profits not allow them to disappear.
The short video below of the GBPAUD trade shows the magenta peak on the 180, the congestion dot forming on the 45 minute and how the 3 minute indicated an overbought market as profits were taken.
Although some traders want to take ALL the profits in a move, as an intraday trader, I simply want to take a portion of the move. This allows me to slowly build my trading account over time and not give back the profits I have made. By doing so, I can increase my account and then simply add more contracts and increase the monthly income. Plus, using the TradersHelpDesk methodology, we focus on doubling our risk so one trade doesn’t knock out all our hard-earned profits. Sometimes, when the market is cooperating we can actually increase the risk to reward even more. It’s a slow and steady process that we follow — not an overnight sensation.