Directly from Vladimir Ribakov's Live Trading Room
We have a very interesting situation here with the AUDUSD. We are going to be looking for a Bearish move here. This trade will take place on the H4 charts. If we look we have a flag forming with 6 possible spots touching within the flag. We generally want to see a break on the 7th touch and this is where our trade comes in. We have a support around 1.0730, if we get the break down through the flag this will a break on the 7th touch which is a very reliable break and if price breaks our support at 1.0730 with the combination of a break down of the RSI indicator 50 line and a cross down of the Stochastic indicator this will give us our entry to sell. We will be aiming the duplication of the flag to around 1.0650.
AUDUSD trade setup for March 02, 2012
AUD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3