Double Top with RSI divergence on AUDUSD
Updated
Hey guys,
on AUDUSD we are retesting the daily structure level that was a former support. Now that's been broken as you can see on the left hand side it could turn into resistance and provide a possible turning point for the bearish continuation.
When price approached zones like this i use the 1hr or 4hr chart in order to find some good opportunities to short the market.
On the right hand side you can see in the hourly chart we have a double top with rsi divergence. In the 4 hour chart RSI has recently crossed the OVERBOUGHT condition, giving us more confidence on this trade.
The completion of the double top, for my personal rules, is given by the engulfing candle that you see above with a blue arrow.
Stops above the highs, first target at 1:1 and second target along with structure for a longer term position.
Let's see.
If you have any question or remark, write below.
Otherwise, see you in the next chart!
on AUDUSD we are retesting the daily structure level that was a former support. Now that's been broken as you can see on the left hand side it could turn into resistance and provide a possible turning point for the bearish continuation.
When price approached zones like this i use the 1hr or 4hr chart in order to find some good opportunities to short the market.
On the right hand side you can see in the hourly chart we have a double top with rsi divergence. In the 4 hour chart RSI has recently crossed the OVERBOUGHT condition, giving us more confidence on this trade.
The completion of the double top, for my personal rules, is given by the engulfing candle that you see above with a blue arrow.
Stops above the highs, first target at 1:1 and second target along with structure for a longer term position.
Let's see.
If you have any question or remark, write below.
Otherwise, see you in the next chart!
Trade closed: target reached
Few minutes after this post, price triggered my entry point and immediately fell down to target1. Stop moved to break evenTrade closed: target reached
Second position out at break even. Now eyes on the upcoming Bat!
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