The chart below was posted on social media @AidanFX September 21 2021 showing the AUDCAD bearish scenario. Price formed a bearish divergence pattern (black) on indicator and price on September 20 2021 and was then followed with a move lower. The bearish divergence pattern (black) with the reciprocal AB=CD bearish pattern (purple) terminating point D at the BC 0.50% Fib. retracement level and price also respecting and staying below the Kumo cloud allowed me to feel confident entering a SELL trade. Entered the SELL entry at 0.9286 with Stop Loss at 0.9346 and Targets at the 1:1 RR minimum with full target at the 1:2 RR.
AUDCAD 4 Hour Chart September 21 2021
On September 23 2021 I posted on social media @AidanFX “Will be looking to add 2nd AUDCAD SELL as long price stays below 0.9260 for another push lower towards 0.9190 area.” When price action signalled the 0.9260 level would hold I entered 2nd SELL entry (red) at 0.9238 with Stop Loss at 0.9258 and Targets at the 1:2 RR minimum.
AUDCAD 4 Hour Chart September 23 2021 (2nd SELL Entry)
AUDCAD eventually moves lower and on September 24 2021 price hits 1st sell entry (green) 1:2 RR target at 0.9166 from 0.9286 for +120 pips (+2%) and also hits 2nd sell entry (red) 1:4 RR target at 0.9158 from 0.9238 for +80 pips (+4%). Banked a total of +200 pips (+6% gain)(risked 1% on each trade). A trader should always have multiple strategies all lined up before entering a trade. Never trade off 1 simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media @AidanFX you too could have caught the AUDCAD move lower. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
AUDCAD 4 Hour Chart September 24 2021
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Stocks and ETFs) in 4 different time frames and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days FREE !!! Just click here –> 14 day FREE trial
Back
