jeremisong

Double Tops, Triple Bottoms (M Shape)

Short
FX:AUDUSD   Australian Dollar / U.S. Dollar
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1
The AUDUSD has been ranging for a while and it is apparently that both resistance and support levels are respected by the market. As of last Friday, the chart has formed a nice "M" shape. With the latest chart bar closed as a bearish engulfing and given Australia Central Bank is expected to reduce its interest rate, the sentiment is bearish .
A sell stop should be place below the low of the bar.

Comments

Agreed.
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I total missed the engulfing, I was looking at how the 2 recent closes were a double high, low close formation. Also I'm being a little aggressive, I want to enter on a 50% retracement of prior candle, with a stop above the double high.
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