Looking at 4H chart of AUDCAD
we can clearly see that price has formed a complete elliott wave
cycle. Price went down in 5 waves, and after a typical divergence with RSI
it moved up into a correction in 3 waves ABC reaching 0.618 of the impulsive leg (waves 1-5). A very classic cycle..
Having in mind that we are in an overall downtrend this is a very nice setup for a short trade. There are two things we can do:
a) Wait for a bearish harmonic pattern
to form in the lower time frames
b) Enter the market when price breaks the short term support trendline
(blue in chart)
If a harmonic
is formed i will repost an idea linked with this one..
Like & Comment :)