It's been a year of audchf trading between converging lines, logic tells that at some point, price will break to one of both sides, up or down. But it is the time yet?
I have some factors that indicate it is not:
Price climbed to test two important trendlines, and closed with a nice red candle, then consolidated at this zone, as macd decreases value, giving a...
Equality between A-C is common, so according to this idea, this may be an opportunity to short.
The risk to reward is really good for two targets.
Short with a tight stop, just above swing high.
Since the decline from 01-02-2016 to 11-02-2016, price retraced, and managed to climb to 618fib, it got caught between converging lines, a sign of weakness, and divergence in macd formed, I was looking to short right at 618 level, but as i was at the limit of open trades, i didnt take it.. Now its breaking out of the consolidation zone, and it still...
This may look a little confusing with all the trendlines and arrows, but it is very simple; what i am expecting now is at least a retrecement of the down trend, i said at least, because there is a possiblity (from my point of view) of price resuming the long term up trend now. If it does retrace, and gets rejected off the channel, i marked with the blue...
Recent price action may dictate further downside for this pair, in first instance im looking to one more wave down, as i'm inclined to a ABC pattern. Price seems to hold at 0.5 fib, of the 5 wave previous impulse down. Heikin Ashi showed reversal signs. We can fit this in a parallel channel to give context, but it doesnt mean much more than...