So price is in a downtrend making lower lows but my stochastic is making higher highs. Classic pattern for a reversal, I did put a sell signal out on this trade on Friday but just spotted this and now stuck what to do😅.
My thinking is if price does break my major resistance line I may look for sells as this divergence is suggesting a reversal.
Appreciate it if...
AUDCAD IS FOLLOWING STRUCTURE FOR THE ABC PATTERN MEANING WE COULD HAVE A SELL OFF.
FIBONACCI ALSO ALIGNS WITH THE SPECIAL POCKET OF 61.8 AND 71 LEVEL.
STOP LOSS OF 25 PIPS WITH A GAIN OF MINIMUM 75 PIPS,
2ND TARGET IS 110 PIPS AND LAST TARGET IS 140 PIPS
BARING IN MIND NFP ON FRIDAY WILL BE HUGE SO BE WEARY
There are two possible plays on LISK-BTC either the head and shoulders completes formation and we get a further drawdown (note that there's already negative momentum) OR we can see a bounce off the long term trendlines with a bounce off the parabolic trendline off the RSI. Comment on how you guys think it will play out!
There is a dual scenario, which is hard to tell at this time which way it will play out. Parabolic trendline on RSI shows positive momentum, however, the Head and Shoulders pattern may be in the making. In addition, major trendlines are about to be reached. - What do you guys think?
On my previous post I stated that there could be a downside movement for this pair. However, there was a large amount of upside movement which looked like it was due to noise or news which has been released. As seen yesterday there was some news released for AUD which may have sparked the current increase in buyers.
I feel that the noise period is over and a...