AUDUSD chart construction is becoming remarkable
I have never used this blog to track my actions in an individual market over a period of time. I will attempt to do so in the $AUDUSD in the period ahead. If the market unfolds as I think it might, I will explain my entry (leverage, sizing, entry and trade management decisions) and exit activity. If the market does not unfold the way I think it might, well, then this was
The weekly AUDUSD chart displays a 16-month symmetrical triangle. While this pattern could become either continuation or reversal in nature, right now I have a slight bias toward the short side of the market. Nevertheless, I would go with an upside breakout.
The daily chart displays a possible 4-month H&S top pattern. That the left shoulder is almost of equal height to the head does not disqualify this pattern as a H&S top.
The right shoulder of the daily H&S top displays a possible wedge or channel pattern. A close below the Nov. 9 low would complete this wedge and indicate that the right shoulder high is in place.
I will be monitoring the daily and intraday graphs. I will short a close below the Nov. 9 low, risking 1% of my trading capital (in other words, per $1 million of trading capital I will risk $10,000). If this trade unfolds I will provide more detail.
Markets: $6GA_F, $AUDUSD