AUD/CAD – Reversal Setup Watch (4H Chart)AUD/CAD just made a strong move down, but instead of reacting, I’m observing the chart closely for a possible divergent reversal setup. This is not a trade entry—this is a watchlist note based on what would qualify as a potential long.
Key Conditions I'm Watching For
✅ Momentum divergence developing—momentum is high but starting to tilt downward
✅ Rejection pattern such as:
A hammer candle
Multiple failed attempts to go lower
Strong wick showing price rejection
✅ Volume must be at least 75+ to validate the shift
✅ Structure must align with the idea—price should show hesitation at the lows, not continuation
Chart Notes
This chart currently shows:
2 documented losses—included for transparency and improvement (1 provided a valuable lesson to be applied in all future trades)
Final Thoughts
This is a high-potential scenario developing, not a confirmation to enter. My strategy requires multiple layers of alignment before committing to any trade. I’ll continue monitoring this pair for a setup that meets all conditions.
If it comes, I’ll be ready. If not, I wait.
