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Major red bearish Wolfe wave was formed by the
AUDNZD pair.
It is being supported by RSI divergence as well as the formation of minor orange pattern inside its internal structure.
The closer look at orange WW reveals that it is also being backed by RSI divergence.
Significant volume rise at point 5 confirms the importance of this area and indicates either continuation or possible reversal of the current trend:
Interestingly, the planned TPs of both waves also lay at one straight line (from point V to point VI).
6 lots opened at 1.0837 SL 1.09459 TP1/2 1.06510/1.03602
Major red bearish Wolfe wave was formed by the
AUDNZD pair.It is being supported by RSI divergence as well as the formation of minor orange pattern inside its internal structure.
The closer look at orange WW reveals that it is also being backed by RSI divergence.
Significant volume rise at point 5 confirms the importance of this area and indicates either continuation or possible reversal of the current trend:
Interestingly, the planned TPs of both waves also lay at one straight line (from point V to point VI).
6 lots opened at 1.0837 SL 1.09459 TP1/2 1.06510/1.03602
Trade active
The price re-tested line 1-3-5 and returned back to the internal structure of the wave. This move was backed by continuous RSI divergence and growing volume. 1 more position (1.08606) was added after new peak formation at point 5.
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Use different providers (here - FXCM and OANDA) in order not to redraw the graphics on the same chart all the time :-)
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Trade active
Even though the pair bounced of point 5 of orange pattern, it is likely that AUDNZD is forming the new 3rd Wolfewave (purple) at H1/H4 timeframe:If this scenario is realized, it doesn't annulate the major red pattern, but I wouldn't count solely on orange pattern anymore as there is definite probability of its break.
Therefore, 6 out of 7 positions were closed at basically breakeven, only 1 currently remained.
Depending on which scenario prevails, more positions may be added later.
Big picture
Trade closed manually
As the price formed point 5 of purple WW, shorts were re-opened at the tip of the peak. However, after short descend, the bullish move continued and the positions were closed after reaching the previous top.Thus, both the minor purple wave and the major red pattern were broken and are no more.
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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.