AUDUSD Bounces like a PingPong Ball: Range Setup

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The above shows a 240min chart for AUDUSD from the 8th-27th Aug 2012. As you can see, the price of AUDUSD was bouncing like a Ping Pong ball (Green arrows) on the 8th, 16th, 17th, 21st and 22nd, moving between both Support and Resistance price levels.

I’ve not see such a nice range on a 240 min chart for awhile now and nearly forgotten what a Range Setup looks like. Thankfully, this setup was screaming at me.

On 23rd Aug, the AUDUSD setup (Red arrow) was well seasoned and ready to be served. The price broke above the resistance level but failed to hold above it, this created a classic False Breakout which led to a brilliant sell signal.

For those who took this trade, well done to you!! Looking at the chart, you would have taken a good Reward:Risk ratio of 2-3.

Price Action Rocks!

I hope that is a clear illustration of how traders can use clean and simple Price Action setups to profit from the Forex Market. No indicators are required here as it’s just boringly simple.

Thank you and hope you’re having a good break on this UK Bank Holiday Monday!

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