Hi Traders,
Happy Wednesday!
Today, I am looking at the potential double top we have playing out on AUD/USD in the 4-hour time frame.
We can see that price has been in an ascending channel and following along the ascending trend line.
We may have broken the trendline but we need to see full confirmation by seeing an impulsive close below the yellow neck zone.
If price and volume show a decent impulsive move that closes BELOW the neck zone, I will then be waiting for a retracement back up into the neck zone.
If the retracement happens, I will then and only then open up a short position with two targets.
Remember, volume is key.
We have divergence on the MacD,
We see buyers are weakening out on the MA Lines as well as the histogram.
This just adds confluence to our setup but we need to see that impulsive close below the neck zone.
First target – 0.70 with a risk to reward of 1.3
Second target – 0.695 with a risk to reward of 1.5
Trade safe out there!
The Vortex Trader
Happy Wednesday!
Today, I am looking at the potential double top we have playing out on AUD/USD in the 4-hour time frame.
We can see that price has been in an ascending channel and following along the ascending trend line.
We may have broken the trendline but we need to see full confirmation by seeing an impulsive close below the yellow neck zone.
If price and volume show a decent impulsive move that closes BELOW the neck zone, I will then be waiting for a retracement back up into the neck zone.
If the retracement happens, I will then and only then open up a short position with two targets.
Remember, volume is key.
We have divergence on the MacD,
We see buyers are weakening out on the MA Lines as well as the histogram.
This just adds confluence to our setup but we need to see that impulsive close below the neck zone.
First target – 0.70 with a risk to reward of 1.3
Second target – 0.695 with a risk to reward of 1.5
Trade safe out there!
The Vortex Trader