AUD/CAD is carving out a classic M-Top candle pattern at resisance so a break of the neckline at .8850 will be a confirmed SELL.
M-Tops and W-Bottoms are proof that you don't need indicators to trade.
Indicators obviously help and I use them - but you don't NEED them.
You'll be a successful trader if you just traded M-Tops and W-Bottoms.
These patterns are traditionally traded on a 1:1 ratio with the STOP taken from the neckline to the top of the pattern and the TAKE PROFIT at 1:1 so the STOP is .8879 and the TP is .8819.
As ever, these levels are not set in stone and you should always micro manage your trades and if you reach your take profit and the momentum is still with the position then adjust you TP accordingly.
Similalrly with STOPS. A STOP is not necessarliy a line in the sand that should not be crossed.
If price bounces but the overall structure is still in place then by all means squeeze the SL a bit higher rather than lose but be mindful that there MUST BE a line in the sand if price is continuing north and your're SHORT.
The old adage "let your winners run and shut down your losers early" is for ever true.
M-Tops and W-Bottoms are proof that you don't need indicators to trade.
Indicators obviously help and I use them - but you don't NEED them.
You'll be a successful trader if you just traded M-Tops and W-Bottoms.
These patterns are traditionally traded on a 1:1 ratio with the STOP taken from the neckline to the top of the pattern and the TAKE PROFIT at 1:1 so the STOP is .8879 and the TP is .8819.
As ever, these levels are not set in stone and you should always micro manage your trades and if you reach your take profit and the momentum is still with the position then adjust you TP accordingly.
Similalrly with STOPS. A STOP is not necessarliy a line in the sand that should not be crossed.
If price bounces but the overall structure is still in place then by all means squeeze the SL a bit higher rather than lose but be mindful that there MUST BE a line in the sand if price is continuing north and your're SHORT.
The old adage "let your winners run and shut down your losers early" is for ever true.