We just reviewed and made a case for a AUDUSD pullback. Price did meet the upper channel in the larger timeframe, but as we continue to fine tune the trade, we decided to look at what is going on at the "microscopic" level of the M5 world.
What we saw was a protracted consolidation period at the level where we called for a potential reversal as we looked at a new pattern, called "Kiss of Death, or KOD - Here is where the initial analysis can be found: .
Looking at details of the consolidation, you might at first notice a random up and down bopping of price action . Yet, if you remain still and start looking for correspondence, you might start seeing measured moves, consistent price action over time, and perhaps lines. Using the "clone" feature of TradingView tools, you would possibly be able to decipher a bit more, such as tops and bottoms along these innocuous parallels, some of which are rising, while others falling ... Look mainly for smooth, low pitch lines that have more relevance and authority over time in their relation with price and one another.
I have left in the chart the rationale supporting the overall expectation. There is no definitive outcome as of this writing, but I thought that this might offer the junior trader some insight into an alternate use of channels, as they seem to have a mind of their own, tussling price up and down across their borders, a price action that would other remain incoherent to the eyes.
Disclaimer: All of our analyses are for educational purpose only. The forecasts, analyses and opinions generated herein are not trading recommendations.
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