AUDCAD 1D April 11, 2017 [ Tuesday] Downward Channel (price&RSI)
Observation:
Price breakout from RSI Overbought&Oversold.
Price nearly touching 200MA.
RSI slope downward formed a downward channel
Analysis:
Price moving above 200MA now returns either for a bounce or a breakout leading to strong downwrd movement.
If price breaks RSI channel, making it more oversold, SHORT.
If price follows RSI channel, wait for retracement at the dynamic resistance of RSI, the SHORT for a tighter stop loss.
For a quick profit, LONG and take profit once price reach dynamic resistance of RSI.
Price breakout from RSI Overbought&Oversold.
Price nearly touching 200MA.
RSI slope downward formed a downward channel
Analysis:
Price moving above 200MA now returns either for a bounce or a breakout leading to strong downwrd movement.
If price breaks RSI channel, making it more oversold, SHORT.
If price follows RSI channel, wait for retracement at the dynamic resistance of RSI, the SHORT for a tighter stop loss.
For a quick profit, LONG and take profit once price reach dynamic resistance of RSI.
Trade closed manually
Comment:
Price momentum was too strong as it breaks the narrow channel.
Wait for a reversal candlestick patter, SHORT and make tight stop loss to maximize profit. TP at dynamic resistance of downward channel.