EURAUD DIB + WEEKLY DIV providing potential long
EURAUD weekly chart is forming what appears to be potential hidden bullish divergence along with its higher highs and higher lows which are visually evident.
if we drop down to a daily chart we can see a daily inside bar (DIB) has formed around critical support which is the previous swing low. To continue the bullish bias price should not close below the previous swing low or the uptrend has been arrested.
applying an inside bar break out strategy makes sense here and we can look to potentially ride the swing much further than the initial TP of 1:3 risk vs rewards.
if we drop down to a daily chart we can see a daily inside bar (DIB) has formed around critical support which is the previous swing low. To continue the bullish bias price should not close below the previous swing low or the uptrend has been arrested.
applying an inside bar break out strategy makes sense here and we can look to potentially ride the swing much further than the initial TP of 1:3 risk vs rewards.
Note
inside bar breakout strategy would be applied through a buy stop a few pips above the inside bar with a stop loss below the inside bar with a minimum 1:3 risk vs reward applied to this particular setup.Note
as the inside bar remains valid since we did not CLOSE above or below (only a whipsaw spike to probably stop hunt early longs and also suck in sell stops under the low) i will continue with my bullish bias and leave the BUY STOP stop in place assuming that if it gets activated then price has decided at this point to continue higher with a false break lower.
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