AUDUSD 2018 and beyond
*DJ Khaled voice* Another one...
Here we have another one of my long term birds-eye-view charts, this one is for AUDUSD. What do we have here?
Firstly, all the trend lines here are valid which means we are dealing with valid trends only! yipee! Newer newbies than me, a valid trend line = confirmed trend = clarity on the direction of market = if you keep your tits calm you make money.
Now, our key Support and resistance price ranges are clear thanks to the Swing high low support & resistance indicator by Patternsmart.com. What chart patterns do we see? Well, here we have a bearish pennant pattern. The most likely thing to happen is a breakout to the downside, however, markets will do what they want so until the break is confirmed there's nothing much here. We did get a false break to the upside from June to August of this year but that simply turned out to be that third hit on the top trend line to confirm the down trend.
So, the verdict here is long term bearishness. Unlike my other long term analysis, I slapped on Bollinger Bands on this one to really justify my bearish view. What do the BBs tell us? Well, firstly, in theory, once price touches the upper band it begins to move downwards, we can see that occurrence on that false breakout/third hit on the upper trend line, including the subsequent downward move. Secondly, when price is in a decline from the upper bands, if it crosses the middle band which is essentially a moving average, that denotes strong bearish momentum, we see that too. Thirdly, when the BBs move towards each other and seem to be squeezing price in between the bands this is a sign of market compression. Market compression often tells us that a breakout is imminent. In this case the breakout will most likely be downward since price has formed a bearish pennant (in black). December has started bullish on this pair, lets wait and see what this does for finding entries for this long term trade.
critic, refute, agree!
Mentors not Trolls!
Here we have another one of my long term birds-eye-view charts, this one is for AUDUSD. What do we have here?
Firstly, all the trend lines here are valid which means we are dealing with valid trends only! yipee! Newer newbies than me, a valid trend line = confirmed trend = clarity on the direction of market = if you keep your tits calm you make money.
Now, our key Support and resistance price ranges are clear thanks to the Swing high low support & resistance indicator by Patternsmart.com. What chart patterns do we see? Well, here we have a bearish pennant pattern. The most likely thing to happen is a breakout to the downside, however, markets will do what they want so until the break is confirmed there's nothing much here. We did get a false break to the upside from June to August of this year but that simply turned out to be that third hit on the top trend line to confirm the down trend.
So, the verdict here is long term bearishness. Unlike my other long term analysis, I slapped on Bollinger Bands on this one to really justify my bearish view. What do the BBs tell us? Well, firstly, in theory, once price touches the upper band it begins to move downwards, we can see that occurrence on that false breakout/third hit on the upper trend line, including the subsequent downward move. Secondly, when price is in a decline from the upper bands, if it crosses the middle band which is essentially a moving average, that denotes strong bearish momentum, we see that too. Thirdly, when the BBs move towards each other and seem to be squeezing price in between the bands this is a sign of market compression. Market compression often tells us that a breakout is imminent. In this case the breakout will most likely be downward since price has formed a bearish pennant (in black). December has started bullish on this pair, lets wait and see what this does for finding entries for this long term trade.
critic, refute, agree!
Mentors not Trolls!
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