In this trading strategy, we aim to capitalize on the potential downward movement of the AUD/USD currency pair on the 1-hour timeframe. The strategy incorporates a combination of technical indicators including the Exponential Moving Average (EMA) 200, Moving Average Convergence Divergence (MACD) for trend confirmation, and Supertrend for identifying potential entry points.
Indicators:
EMA200: The Exponential Moving Average with a 200-period setting provides a reliable indication of the long-term trend direction. In this strategy, a downward sloping EMA200 serves as confirmation of the overall bearish sentiment.
MACD Trend: The Moving Average Convergence Divergence (MACD) is utilized to confirm the strength and direction of the trend. A bearish crossover (when the MACD line crosses below the signal line) or divergence from the price action suggests potential downward momentum.
Supertrend: Supertrend is a trend-following indicator that helps identify potential entry points. When the Supertrend line changes its color from green to red, it indicates a shift from bullish to bearish sentiment, signaling a possible entry for short positions.
Indicators:
EMA200: The Exponential Moving Average with a 200-period setting provides a reliable indication of the long-term trend direction. In this strategy, a downward sloping EMA200 serves as confirmation of the overall bearish sentiment.
MACD Trend: The Moving Average Convergence Divergence (MACD) is utilized to confirm the strength and direction of the trend. A bearish crossover (when the MACD line crosses below the signal line) or divergence from the price action suggests potential downward momentum.
Supertrend: Supertrend is a trend-following indicator that helps identify potential entry points. When the Supertrend line changes its color from green to red, it indicates a shift from bullish to bearish sentiment, signaling a possible entry for short positions.