AUDCAD is possibly at a difficult turning point - if at all - at the moment. I'm not advising what people should or shouldn't do. Look at snapshot below.
1. There is a daily trend down on the 1D. Daily trends usually from my experience carry more weight than lower time frames.
2. There is an uptrend on the 4H that has just broken - and signs of some possible development of a head and shoulders (in this case two left shoulders and a right - yes, I know tradition says their can only be two shoulders in total).
Trends may break and recover.
3. There is a band of soft support on the 4H.
For trend followers, the daily seems better to short but remembering that in trend following large stoplosses are usually necessary especially on daily charts with huge ATRs (and it depends on the individual traders acceptable loss threshold). Acceptable loss also has to be taken in relation to reasonable targets.
For 'swing traders' Trading_Jazz is spot on - but also recalling that the charts don't 'obey' harmonic patterns (as patterns only provide probability estimates).
Overall a short looks best.
1. There is a daily trend down on the 1D. Daily trends usually from my experience carry more weight than lower time frames.
2. There is an uptrend on the 4H that has just broken - and signs of some possible development of a head and shoulders (in this case two left shoulders and a right - yes, I know tradition says their can only be two shoulders in total).
Trends may break and recover.
3. There is a band of soft support on the 4H.
For trend followers, the daily seems better to short but remembering that in trend following large stoplosses are usually necessary especially on daily charts with huge ATRs (and it depends on the individual traders acceptable loss threshold). Acceptable loss also has to be taken in relation to reasonable targets.
For 'swing traders' Trading_Jazz is spot on - but also recalling that the charts don't 'obey' harmonic patterns (as patterns only provide probability estimates).
Overall a short looks best.