A setup can't get much better than this for the system I am using; both time frames align perfectly to create a low risk high probability trade.
On the weekly chart, a return to the wave after a long period of buying the Rand also marks a test of the broken H&S neckline. This is all you need to go look for a trade on the daily chart. Note that the impulse is still green and that keeps me from putting on my full position.
On the daily chart, a perfect double top with confirmed class A bearish divergences on MACD lines and histogram, and a dark cloud cover for the trigger.
As soon as the impulse turns blue on the weekly chart, I will double my short position.
Keep in mind that the Rand yields 7% per year, so the longer it takes for this pair to reach my target, the better.
Soft stop above the double top, first target at the swing low, if that breaks, look for 12.6.
On the weekly chart, a return to the wave after a long period of buying the Rand also marks a test of the broken H&S neckline. This is all you need to go look for a trade on the daily chart. Note that the impulse is still green and that keeps me from putting on my full position.
On the daily chart, a perfect double top with confirmed class A bearish divergences on MACD lines and histogram, and a dark cloud cover for the trigger.
As soon as the impulse turns blue on the weekly chart, I will double my short position.
Keep in mind that the Rand yields 7% per year, so the longer it takes for this pair to reach my target, the better.
Soft stop above the double top, first target at the swing low, if that breaks, look for 12.6.