7pasos

Price box need to be broken to confirm reversal

FX:AUDUSD   Australian Dollar/U.S. Dollar
302 0 0
Useing the candles to check up on the AUDUSD             we can observe a clear divergence (remember de use of the context is vital to understand the balance between bulls and bears) which shows that we are at a point where the bears are exhausted.

Afther the reduce in the down side pace, we observe the price in a price box (small congestion of prices in a horizontal zone) also identified by traders as a accumulation zone, under the candles technique the box should be broken by a close at the top extreme to confirm the reversal to the upside, preferably with a big body candle.

As far as now the only reversal to the upside is the harami which in fact made the lower lows and those will work as support zone. Given the harami is a weak reversal signal the market still need the break of the box to confirm this intent to reverse.
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