AUDCAD PATTERN IN PLAY
in my previous trade on this pair i was expecting price to bounce off my target (which it did) and retrace down lower, however, i often still check for obstacles that might prevent this from happening, i still believe the price is going to be driven lower, however i see the market painting a pattern which spark my attention. my course of action is to wait to confirm this pattern. Price has to break pass a small barrier at 1.01415, then downwards. i've placed my D leg in this region because of the concentration of double bottoms. Since these are all sharp moves i have a difficult decision to make; that is, usually i'd wait for a clear reversal candle, but in this case, i have to place a Buy order at this region since price may be impulsive. Other option is to switch to the 15min chart and look for a reversal candle and enter if it is present, if not, i'd wait and look to enter downwards if price break and close below previous low. there is still some time to analyze future price action to see if the rules will change. My intentions are to buy on a retrace to the 61.8% retracement of the CD leg which puts us where current price is.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.