GBP/AUD THE 00 ,BUYING WITH THE TREND

I love trading from the values 00 , on indices that will be 7200 or 12900 or 27200 and on currency s it ll be 1.2900 or 0.8800 you get the picture
Here s a pair that this could present a very very nice risk /reward as you could get as little as 20 pips but as you are buying from the bottom of the flag in a good uptrend your reward with good trade management could be TEN TIMES that ,.... now that is sexy

As with all trading we need some entry rules /guidelines
1/ first touch is often best
2/ a strong rejection is great confirmation that you are in a good trade
3/ Use bollinger band extremities and spikes to identify ie sell from the bottom bollinger on a spike lower thro the bollinger is even better
4/i prefer it if for a buy three time frames are all in the lower bb ie the 15 min 1 hr and the 2 hr
5/ Confluence with pivot points strengthens your case for your entry
Managing your trade
you want a bounce off the 00 the more momentum the better and you dont want to see price go thro the 90 ie you buy at 1.6800 sometimes it will go lower but it s important it cant go lower then 1.6790 if it does you will very likely see 1.6780
SO manage your risk quickly THIS GOES AGAINST SOME TRAD THINKING!! but i suggest to you that as soon as price has rejected the 00 line and moved up 5-10 pips move your stop to 0-3 pips break even is even better

WHY DO YOU DO THIS
1/ protects your capital if you are stopped out because price reverse then you lose will be minimal at worst
2/you can always re enter sometimes at a better level
3/ this trade is ALL about a strong rejection , if there is no strong rejection the case for the trade is weakened so minimise your exposure

HOMEWORK
pick three or four currency pairs and put in some blue horizontal lines at the 00 GBP pairs are great at the mo as they move
look at how often you get a strong rejection
look at how often even a 5 pip stop loss would suffice

look at what happens if price goes thro the 00 ............often it will stop at the 80(1.68800)down and the 20 up (1.6920)
Good luck Rob