The monthly timeframe… It’s not, perhaps, something that everyone wants to be involved with, but in this instance, when it comes to knowing how to trade AUDCAD, it can be a useful tool indeed. After all, if there is decent profit potential around a trade, isn’t it always a good idea to go for it, even if the timeframe isn’t what you wanted or expected? We think it might be. Trading is about gaining a return on your investment, and good profits are the way to do just that.
We hear that a lot – waiting around for the monthly timeframe is boring. But it’s only boring if that’s the only thing you’re doing, and if you’re watching it every day. The key to enjoying the monthly timeframe, especially when it comes to how to trade AUDCAD, is to leave it in the background doing its thing. You can make other trades on the weekly or even daily timeframe and leave your monthly ticking along nicely.
So take a look at the trade we have here with the AUDCAD on the monthly. You can see three higher lows which seem to suggest that something interesting is on its way for a start.
After that things seem to be accelerating upwards on the monthly timeframe, showing that when it comes to how to trade AUSCAD patience can certainly be a virtue. Checking the weekly timeframe confirms all of this, and it’s always wise to check if you can – don’t be tempted to jump ship though, unless things really do take a turn. You might miss out on something pretty exciting (even if you think monthly timeframes are boring).
Remember this tip – when you’re trading on a daily timeframe, check the 60 minute timeframes for confirmation. When trading on the weeklies, check the four hourlies. And when trading on the monthly timeframe, check the weeklies. You’re looking for bullish reversals, easy to spot and handy indeed when it comes to trading positivity. These small snippets of information and confirmation can help you along in discovering how to trade AUSCAD and plenty of other forex trades too.
Because this particular trade is on such a long timeframe, it’s important to be more aggressive when and where we enter this from. Placing an entry just above December’s high is the best place to begin.
The stop loss needs to go just below the low of January. That increases the profit potential, and since we’re risking two percent on this particular AUDCAD trade, that gives us a profit potential of 5.2 percent. It’s easy to see now why the monthly timeframe is a factor in deciding how to trade AUDCAD.