Another example of a Price Action Engine trade. The trade was on the AUDUSD during Asia, which is mostly when I am active.
Good news for the Aussie had caused a big spike in price. If you are familiar with the Price Action Engine, you will understand how juicy these price spikes are to trade, once you understand the mechanics behind them.
Unfortunately, this was a losing trade. All my fault: I made the classic mistake of chasing price after missing the original entry. Still, I only just got taken out, and if I’d had a few more pips in my stop loss, would have survived. That’s trading…
To those of you who want to see examples of Price Action Engine trades on the higher timeframes, a little clarification of my approach is appropriate here. I always track price on the higher timeframes, and then when an opportunity such as this kind of price spike presents itself, I drill down through the other timeframes to get my entry. This allows me to fine tune my stop loss and take profit. I usually enter on a five-minute chart.
If you wanted to trade on the higher timeframes you would use exactly the same principles involved in Price Action Engine trading, but your stops and take profit targets would be correspondingly larger. It’s as simple as that: there is no difference trading between the timeframes. I simply choose to use shorter stops and take profit targets because I prefer to be in and out of trades more quickly.Here is an example of a Price Action Engine trade that illustrates the ENGINE behind price moves...Click To Tweet
You can view the video of this trade by clicking on the chart below. DON’T FORGET TO LEAVE FEEDBACK IN THE COMMENTS SECTION BELOW! And, if you want to take a closer look at the Price Action Engine here is that link once more:
Take Care & Trade Well,