I realise that by using the Vantage FX platform to publish my writing, that there will always be scepticism around ‘broker manipulation’ and the like.
Both myself personally and Vantage FX as a company have tried their best to be open and transparent about how they interact with clients and conduct business as a retail forex broker. Nothing here is designed to trick you or manipulate you into trading a certain way.
On yesterday’s AUD/USD blog we were looking at the following level and the opportunity that it offered to trade using tight stops:
I wanted to use this setup to highlight how important it is to take quality trades that offer excellent risk:reward off clear levels.
What I’m trying to do here on the Vantage FX Forex News Blog, is to highlight good levels that you can base your own trading decisions around, with your own risk management principles applied. Nothing here should be taken as a trade recommendation straight off the bat.
Yesterday I said that the re-test into the above level gave traders a chance to use ‘something like a 10 pip stop’ which ‘offered crazy-good risk:reward on the trend line reactivation’. I was simply spruiking the benefit of trading around key levels because of the risk:reward on offer.
Looking at today’s live chart, we can see how price acted after re-activating that trend line. Price tapped the level to the pip and from then on, there was ample opportunity to be able to get into a short after this confirmation was given on an intra-day chart.
It’s now 24 hours later and price has found short term support back at the marked swing lows. If your stop was tight, the prospect of a best case scenario 6:1 risk:reward was on offer for a single day trade.
Opportunity is always there.
Enjoy your weekend!
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Dane Williams – @VantageFX
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