Best Practice: H4R vs H4T, A look of trending vs reversal on AUDNZD

All Reversal trades are still counter trend trades

Previously we were looking at AUDNZD with a opportunity for a reversal.

Why do we want to trade a reversal if it is still considered a counter trend trade? The answer is simple, a reversal if successful, can also be the starting point of a new trend which can potentially allow us to ride the trade for some time.


So let’s take a look at AUDNZD as a point by point analysis using the H4 charts.

AUDNZD - 4 Hourly Charts

AUDNZD – 4 Hourly Charts


  • Previous trend was Down
  • Following a Bullish expansion, a 1234 pattern was also formed. This pointed to a possible H4R.
  • H4R failed when price expanded down below the previous 3 weeks lows which fits the criteria of a BM.
  • Current week (Wk#9), look for price to retrace to previous resistance levels in the form of a 1234 pattern.
  • Take note, if price is to continue to be bearish, it needs to stay below the resistance levels.

UPDATED 12th March 2014 (by Jerome)

Price has since moved 100+ pips for this pair, look out for next support levels as areas to do trade management.

Next Support levels in AUDNZD

Next Support levels in AUDNZD

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2 thoughts on “Best Practice: H4R vs H4T, A look of trending vs reversal on AUDNZD”

  1. Chiah Hang Dennis Eng says:

    it seem that H4 1234 has formed and pt 4 is at the support as indicated. Do you see price continue to be bearish after breaking 1.0680?


    1. Jerome Lee says:

      Hi Dennis,

      If price can go below 1.0650, chances that it continues down will be higher.

      At the moment, price is not moving much as #aud and #nzd are both strong so its a waiting game for now.


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