June 9 Chart of the Day - AUD/USD
Today we look at another forex chart, the Aussie Dollar AUD/USD.
It would seem like the bulls are large and in charge the past couple of weeks and gunning for 0.68 - 0.69 area. But not so fast my friends...
Because on the daily chart price is now tip toeing as we like to call it through a change control zone. So what exactly does that mean?
Change control zones on a chart are exactly like they sound. Where control turns over from bulls to bears or bears to bulls. But it's rare that it happens with out a "tug of war" so to speak meaning that price may tend to pick a range and ping pong between it, trade sideways, trap and frustrate traders before declaring a winner.
This sort of price action happens across virtually every chart and can occur across multiple time frames. Admittedly, it takes a trader's eyes a while to train and identify but once they are recognized it can add more trading edges which means more trading opportunities.
Truth is, as traders we really shouldn't label ourselves as bulls or bears. Rather, we should create levels of interest in both directions so that we can use the markets as our personal ATM machines!
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
Wanna learn more about Change Control Zones and the other price action tools we teach?
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