Disclaimer : This is not investment advice. Past performance is not an indicator of future results.
Hi Traders! AUDNZD double wave provides short term sell trade setup. A detailed analysis of this bearish opportunity is as follows:
Indicator used: MACD
Tool used: Fibonacci expansion
AUDNZD Analysis – Sell Trade Setup On H4 Chart
On the H4 chart the price has created a double wave up, we also have an important resistance zone that has formed based on the fibonacci expansion level of the cycle while measuring the first wave from the low on 24th October 2019 at 1.06637 to the high at 1.08242 on 30 October 2019 and to the second low at 1.07078 on 4th November 2019. The price is currently nearing this resistance zone, in addition to this we also have a bearish divergence that has formed based on the MACD Moving Average and MACD histogram indicator. which we may consider as evidences of bearish pressure. Once the price reaches the resistance zone, we may then look for more evidences of bearish pressure on lower timeframes in order to join the bears.
AUDNZD Analysis – Sell Trade Setup On H1 Chart
On the H1 chart we have a triple wave that is forming at the moment, we have a strong resistance zone that has formed based on the fibonacci expansion levels of the two waves, while measuring the first wave from the low at 1.07078 on 4th November 2019 to the high at 1.07683 on 4th November and to the second low at 1.07466 on 5th November and the second wave from the low at 1.07466 on 5th November to the high at 1.08280 on 6th November and to the second low at 1.07980 on 6th November, these fibonacci expansion levels also coincides with the H4 resistance zone. We may now expect one more push higher from the current zone towards this resistance zone and then we may look for bearish setups with more bearish evidences in order to start looking for short term sells.
The combination of the fibonacci expansion levels of the H4 double wave and the H1 triple wave provides us a strong resistance zone, we also have a bearish divergence. So if the price moves higher and reaches this important resistance zone we may then look for bearish setups with more bearish evidences in order to start looking for short term sells.
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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