Short

Aud/Cad 4hr Head and Shoulders forming ?

Updated

Here is a short trade I've been in since Friday. Entry was taken on the formation of the harmonic pattern. Entry was at 0.9580 with a broad stop set at 0.9740

Encouragingly it looks like a head and shoulders pattern is forming with RSI and MACD showing bearish divergence.

Should the H + S complete, we would be looking at a minimum retracement to 0.9460

Cheers
Andy

Trade active

Took another short at 0.9623 and moved my stop to 0.9670. total position now in at an average of 0.9601 with an t/p on 1/2 the position at 0.9470 and the second half at 0.9415 with its stop being moved down to a suitable level once the first half hits it's target

Trade active

This pair is keeping us on our toes! The pair got quite close to my stop at 0.9670 but the hourly chart now shows a Doji candlestick where the new intraday high was made. This should keep me in the trade a bit longer but strictly speaking the head and shoulders pattern is no longer valid. Holding on to this position in the belief that the bearish divergence in the rsi and macd indicate a reversal due.

Trade closed manually

Just taken a small profit on my combined short of 0.9601at 0.9587.

Had the head and shoulders actually completed I would have been more happy to hold the short. With shorter timeframes looking oversold right now I think there may be a better opportunity to short again.

Thanks for following

gj7rwt

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