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 ” 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.SELL as long price stays below 0.9260 for another push lower towards 0.9190 area.
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
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