Hi guys! Looking at the week ahead there are several potential setups on my watchlist. One of which is this bullish position on the EUR/AUD.
Using the shark formation, price has already entered our PRZ whilst testing a strong level of daily support! Since this level has been tested previously we have every reason to believe history will repeat itself (see below for support). Should this support be broken, we would see a clean break down to the supporting weekly trendline (also see below). We will assess the candlesticks on the 1 hour and 4 hour chart for confirmation of our entry.
This week we're awaiting releases on CPI for Europe, which will also be monitored closely should we not have already entered before this release.
Shark Ratios are as follows:
C = 1.13-1.618 D = 1.618-2.618 X to D = 0.886-1.13
As always, risk:reward should be 1:2 minimum- in this case 1:3.
Keep an eye on this one guys; I'll update as time progresses.
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Here is a slightly bigger picture of price action surrounding the setup..
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As you can see below, our resistance-turned-support on which the setup is based has been tested vigorously on the lower timeframe. Should the support break, it should be clean and without hesitation- minimising the risk of candles providing us a false signal.
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Yesterday's daily candle closed as a bullish hammer at the bottom of a small down trend. This is a sign that the buyers are now re-entering the market!
Nice call bud. Looking at this though as an Alt-Bat completing at a good demand area
KyleMcQuade
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@frupreneur, Thats a pretty low D point. I like your pattern, but if price goes as low as the alt-bat dictates then I'd be taking this as a break of support. Keep an eye on the candles though, we'll see how this plays out :)
frupreneur
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@KyleMcQuade, you right. I agree looking at your daily update. A strong rejection will be as great sign of it coming through.