FullTimeTrader
Short

GBPAUD-broke and close below 2.15000

FX:GBPAUD   British Pound/Australian Dollar
855 3 23
a year ago
I wanted to post this idea yesterday but i decided to wait for the AUD news.
Similar to GPBCAD, this pair is on clear downtrend. Rejected from the trendline resistance and now price broke the strong psycholevel 2.1500 and closed below it with a clear red candle and is making a pullback. They used to call this system "M2 setup".
We have also a hidden bearish divergence on MACD still in play.
I think price is ready to continue the downtrend at least next month.
SL and targets shown on chart.
We have GBP rate news on thursday so trade with care.
Best regards.
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Always do your own analysis before opening a trade.
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a year ago
Comment: First and second targes hit. Third target is just a matter of time. Regards.
a year ago
Trade closed: target reached: All targets hit.
Hi, that was spot on. Please excuse my rookie qustion, but I thought, that hiden div. line should be drawn on the MACD line, which in this case goes down... could you share whats the right way then?
Thanks
Reply
FullTimeTrader sketchmaster
a year ago
Hello, thanks for comment. To spot a hidden divergence we can use any oscillator, please refer to:

http://www.babypips.com/school/high-school/trading-divergences/hidden-divergence.html

The MACD moving averages are "slow" to spot divergences (but gives stronger signals). Same with AO.
The MACD histogram and stochastics are more sensitive to spot some divergences. You can see it below. It depends on each trader to choose the oscillator. Of course i always use indicator only as confirmation for a setup, we should have other strong reasons to consider an entry. Regards



snapshot
+1 Reply
Got it. :) Thanks a lot to take a time to answer. It is greatly appreciated.
Reply
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