My Millionaire Goal

AUDUSD 19-20 Apr

1. Candle A touched a long term bullish uptrend, suggesting that price may be reversing.
2. Candle B seems to suggest that the prior downtrend will continue, since it penetrated the 20-days moving average but closed below it. However, the 5 candles before it were bullish, with 3 strong trend candles and 2 dojis. Thus, a second confirmation is necessary. (It is advisable to sell after TWO pullbacks to the moving average)
3. Candle C is an outside candle which served to trap bears who mistakenly interpreted candle B as a signal to sell. It also confirmed that the bullish reversal first revealed by candle A is valid. Bulls can buy one pip above Candle A.

1. The trend is your friend
2. Always try to enter after (two) pullbacks
3. A failed signal is one of the most reliable signals (e.g. failed breakout of trendline)
4. Bull and bear traps further increase the probability of success
5. Indicators are lagging; price action provide much better entry points
6. When in doubt, or when there’s contradicting information, DO NOT TRADE

USDCAD Triangle Breakout

If I only drew the bearish trendline, Candle A may have tempted me to sell.. (inside bar at trendline). However, I always find inside bars tricky as they do not trap any traders.

If I drew the bullish trendline as well, I would realize that a triangle is forming and would wait for a breakout to occur.

One possible entry is two candles later, at one pip above candle A (The candle after candle A is a bear trap and a double high with candle A).

Another better entry is at candle B.