AUDNZD Bullish Inverted Cup/Handle
Updated
A possible Cup and Handle Reversal on the AUDNZD Daily. Also forms a descending triangle as any cup/handle pattern should.
1) If it closes above the upper triangle trend with a strong bullish candle then a ling trade should be successful.
2) If it breaks out below point B at 1.08334 then the reversal should be on.
Inverted Cup with Handle
"You must wait for the breakout with this pattern before trading. Too many patterns.....had prices moving upward instead of downward, especially in a Bear market. A breakout is a close below point B, the lowest low on the right rim."
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Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Second Edition 2005
1) If it closes above the upper triangle trend with a strong bullish candle then a ling trade should be successful.
2) If it breaks out below point B at 1.08334 then the reversal should be on.
Inverted Cup with Handle
"You must wait for the breakout with this pattern before trading. Too many patterns.....had prices moving upward instead of downward, especially in a Bear market. A breakout is a close below point B, the lowest low on the right rim."
-
Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Second Edition 2005
Note
PSI like this setup because it is very likely to make a big move either long or short and the next candle will give a strong indication of which way it will go. If the Falling Three pattern develops it gives strong indication of a good short setup. If it doesn't it gives a strong indication of a good long setup. Either way a good trade is very likely and there will be a good indication of which direction it will take.
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