AUDCAD: D1 and H4 plots down patterns
Big Picture Look on D1
- On the D1 charts, we can see a large 1234 pattern which has been forming since mid 2013.
- Price is currently at F7 level of this large downflow and near the high of the equidistant channel.
- We also can see a head and shoulder pattern forming around where point 4 could be.
- Take note that at point 2 of this large pattern there will be a strong psychological level of 1.0000 (parity).
Zooming into the H4 charts to look at the right shoulder
- On the Right Shoulder, we see an expected smaller 1234 pattern.
- Price has already completed a WR trigger.
- Look for either a retracement to point 2 as possible re-entry
- 13TL or modified F6 trigger.
- Take note however that there is a zone of support of previous H4 boxes low just after F6 (Fib-R from pt1 to pt4)
- Alternatively, wait for price to close below this support and retrace to re-test it as resistance in a form of a 1234.
Results and Review of the Trade
See how students managed entered on this trade and are still riding it in this blog post.