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AUDNZD seems that the price has found a strong level of Resistance on the H4 chart. The chart shows that the price had a rejection from a level, where it had a rejection earlier as well. An H4 Bearish Engulfing Candle has been produced as well. This means a breakout towards the South would make the price go further down. Let us have a look at the H4 AUDNZD chart.
AUDNZD Price Action Analysis – 20th Nov 2018
The chart shows that the H4 Bearish move has two Resistance levels so far. The momentum looks strong too. If the price keeps going down and makes an H4 breakout at the level of 1.06335 and afterwards the price goes up for a little correction and produces an H1 Bearish Engulfing Candle, selling the pair would get us green pips. Let us have a look at the summary of the trade…
- Sell Stop Order: 1.06335
- Stop Loss:1.06635
- Take Profit: 1.05850
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The trade setup is based on ABC chart pattern. The point where the signal might be produced that is called C point. The Stop Loss can be set just above the C point too. That would allow us having a better risk and rewards ratio of 1:3, but the winning percentage is about 70%. On the other hand, if we set the Stop Loss above A point, we get 1:1 risk and reward ratio, but the winning percentage is about 80%. I like to take the defensive approach. Now do a calculation and choose one that suits you more. The choice is yours.
The post AUDNZD Price Action Analysis – 20th Nov 2018 appeared first on Advanced Forex Strategies.
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