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Best Practice: BM on AUDUSD

Week to Week

  • On the H4 chart, we can see that price has expanded above the previous H4 boxes high, this fits a BM criteria pending the close of the week.
  • Retracement to boxes high in the form of a 1234 pattern could give a possible opportunity for price to head higher.
AUDUSD H4 Charts sees possible BM

AUDUSD H4 Charts sees possible BM

Big Picture

  • Next resistance price could head to is clearly seen as several WK boxes highs and lows. (*Updated 2 Apr 2014: This is a multi-year resistance)
Next Resistance Levels to be seen on AUDUSD

Next Resistance Levels to be seen on AUDUSD

 Update (2 Apr 2014 by Jerome)

On 1st April, Binni gave the below tweet.

Let’s take a look at an overview on the D1 charts

Price turns at resistance as seen on D1 chart of AUDUSD

Price turns at resistance as seen on D1 chart of AUDUSD

  • In the current month, price turned when it was resisted by previous month highs and lows
Price displays chart patterns at turning point on AUDUSD

Price displays chart patterns at turning point on AUDUSD

Looking at the H4 charts, we can see that price showed a chart pattern on the H4 as well as on the H1 timeframes.

Take note that the current move is still not considered a down or a reversal but considered as a retracement of the previous upward move.

Confluence of Support seen on D1 Charts of AUDUSD

Confluence of Support seen on D1 Charts of AUDUSD

In fact, if we were to take the Fib-R of the current upflow, we can see that at F5, there was a confluence with a previous turning point on the D1 charts. This coincides with the support level given in the tweet with a buffer.

Update (10 Apr 2014 by Jerome)

Current and Immediate Resistance levels see on AUDUSD

Current and Immediate Resistance levels see on AUDUSD

  • Price did not retrace very far from as previously predicted with reference to above update on 2nd Apr 2014.
  • This shows that price is very much still strongly bullish.
  • At the moment, price is in resistance. If price were to clear above then this level would turn to a support which could propel price towards the next resistance level.
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4 thoughts on “Best Practice: BM on AUDUSD”

  1. Tan Teck Guan says:

    Jerome,
    On entry we wait for a reenactment in H4 then enter, am I correct?
    Thanks

    1. Jerome Lee says:

      Hi Teck Guan,

      Yes, look out for a retracement in a form of a 1234 to previous boxes highs as possible opportunity.

  2. Kangwei Goh says:

    Jerome,

    It seems like the blog posts are looking at mainly D1/W1 chart for analysis and H4 for entry. What was taught to us during the course is H4 for analysis and H1 for execution. It seems like D1/H4 analysis is more accurate as it took reference from the higher timeframe information. Do you guys still look at H4/H1 analysis?

    1. Soh Tiong Hum says:

      Hi Goh,
      The concepts used in H4/H1 are the same as those used in the higher time frames. But whereas the higher time frames drive final movement of price, those on the lower are a series of retracements building up to the big pattern. It always makes more sense to form an idea based on the big picture.

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