AUDCAD: Double Bottom at Right Shoulder (Both Charts)

12 Sep 2014

Recorded a video of this trade to my Synidcate members earlier in the day but ran out of time to post this before my Live Room started. But with not a lot on my radar this morning AUDCAD was a pair that really stood out to me. Not only has the market put in a beautiful double bottom along with bullish divergence and the RSI being oversold. But we're also right at the dollar mark which should act as a pretty powerful psychological level.

Now at first glance I thought I would have to let the trade go as I didn't see a significant level of structure, but as I checked my higher time frames I noticed that "looking left" we did have previous structure in the form of a left shoulder. This is very similar to the setup we captured on the EURJPY a few weeks back.

On the chart I drew 2 different levels of where to think about taking positions off depending on if your more on the aggressive side or the conservative side.

Akil

Also, here's the link to my latest Weekend Review video "Has September Been Frustrating?" talking about why September is often a tough month for pattern traders, or non trend continuation traders. youtube.com/watch?v=dyHAZ6mLa2A&list=UUVveEks3MWZqOsvzTF_LGQg