Reason for the trading strategy (technically):
Price is testing major resistance at 0.8018 ( , , divergence) and we expect a drop from this level to push price down to at least 0.7817 support ( , horizontal swing low support).
(34) sees ascending support as more intermediate support and only a break of this level would trigger a very move. We can also see divergence vs price signalling that a reversal is impending.
when you sale take profit you mean sell AUD for USD right?
i converted AUD to USD already to buy crypto, that means im safe to just sit and hold right? if anything over time when the price flips the other way, i will make a larger profit from the FX profit ontop of any Crypto to fiat conversion correct?
It really depends on how much AUD you've converted to USD.
Take USD1000 and the idea shared above as an example. Sell Aud 0.802 and buy back at 0.782, that's 200-pips which is AUD 0.02. So for this, your probably make AUD20.
Forex trading is slightly different from conventional money exchanger. 1 unit of AUD is AUD100,000. Of cuz, i would say 95% of the forex traders here do not have that much of money on hand to trade off a unit of particular currency. So, leverage is involved. 1:100 leverage for an example. I will only need AUD1000 for a margin to trade off a unit. So I will make AUD 2000 for the example above.
I've tried putting the explanation into simple words so you can understand better.
Hope you get what I meant!
Good luck trading! :)
i then bought crypto using the usd instead of letting sitting idle
i can transfer the crypto to an australian exchange where the price is trading at a premium (i.e. 0.70usd)
so theoretically i should be making:
1) gains from holding crypo if any
2) gains from buying USD while AUD high
3) additional gains for selling crypto purchased using USD from 2) at an above premium rate of 0.7
4) save fees and time since i used crypto to transfer funds instead of margin trading or fiat via banks
is that right?
Yes theoretically you're correct.