AUDCAD Price Action Breakdown

AUDCAD has been steadily moving down in price for better part of 2019 and has started to consolidate since August of this year. As seen on the chart below we have our first Higher low which is further support by Bullish MACD divergence. 

Moving down into the 4H timeframe, price has made a move up towards the 0.902 zone and now has pulled back to key support area which is signified by the horizontal price support and all three of our key EMA’s wrapping below current price. 

US Dollar showing further Bearish pressure against the Loonie

As you can see on the Daily chart, US Dollar has been decreasing in value against the Canadian Dollar.  Daily price has previously made a low at $1.31500 zone.  

Most recently Bears were able push and close below the previous low and support zone of $1.31500  confirming the Bearish strength within the Forex pair. 

As most break outs do, we will be waiting for price come back to the support zone marked by the red shaded zone.  For ideal trade snipping we will be monitoring 4H chart.

XAUUSD – GOLD 4H Timeframe Technical Analysis

Starting off on the Daily time frame to understand the overall trend, you can see that price has recently made a new high around $1550 zone and now have started to Flag or consolidating close its ema’s.

At the beginning of October we saw Daily price testing its 50 EMA and bouncing off that support level. Adding further confluence to our Bullish Bias

On 4H timeframe you see that price has been consolidating and finding resistance around $1510 price zone. Also supporting this price action are all of the key EMA’s curling up rite below the current price action.

We will be looking for a break above the $1510 price zone to enter a Long trade on Gold

How much money can you make in Forex Trading

Similar to when you apply to any other job, when you decide to generate an income via forex trading , asking or knowing how much money you can make is a very valid question.

Most new traders tend to focus on how much money can be made on a  per trade or  month basis. This mainly stems from watching different traders on social media flashing their winning trades. But what’s unknown is their actual capital and some time whether they are actually trading a REAL account. But that’s a different topic for another time. 

What you need to be focusing on is the percentage you can gain relatively to your account balance.    Let’s first discuss why you need to focus on percentage returns.

The amount of money you can make per trade is always relative to the total trading capital. Why? 
Because as disciplined  traders we only risk  X% of our capital on each trade. The percentage you are willing to risk per trade is truly a personal decision, but keep in mind that no one trade should put you account capital or account balance at risk. That said a good risk per trade should be around 1% – 5% per trade. 

That being said you will understand that a new trader with $5000 account balance and a veteran trader with a $100,000 account balance has huge difference in how much money they will risk per trade. 
A new trader with $5000 account balance would risk $50 per trade A veteran trader with $100,000 account balance would risk $1000 per trade. 
If both these traders achieve a 2:1 risk to reward on this trade, the new trader would walk out with a $100 profit and the veteran trader would walk out with $2000 profit. 
I hope this explain why you should not be focusing on the dollar amount gains but rather focus on the percentage of your capital you can gains.  Also please note that you should not be focusing on gains and losses for each and very trader. As a trader you should understand that trading is a probability game and learnt to except loosing trader.  You should be focusing on weekly and monthly percentage gains. 

To summarize what I mentioned above, 

  • Understand that measure your self by percentage gains relatively to trading capital.
  • When you trade always risk no more than 1%-2% of your trading capital
  • Don’t expect to win all of the traders
  • Measure goals weekly or monthly

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