AUDJPY: 3 Falling Methods: Preparing For Drop Number 2AUDJPY has come back up towards the highs of the range for a second time and has seemingly been rejected from the range. It is now breaking below trend and has confirmed a 3 Falling Methods at the break of the trend line. This time around I would expect a much deeper move down than the last time perhaps taking us to as low as the 1.618 Fibonacci Extension all the way down at around 30 AUD.
Falling3methods
HBI ShortThe "falling three methods" is a bearish, five-candle continuation pattern that signals an interruption, but not a reversal, of the current downtrend. I would short below the yellow trend line support on a break and close of it with a 1 hour candle and with a stop loss just above the trend line. There was huge red volume spike and oscillators are looking bearish trading below the zero line. The next candle in the formation should be a red candle breaking down below the trend line or of the last candle . It could bounce off that trend line So be careful and use a stop loss and wait for confirmation of a breakdown of the trend line