AUDCAD, Going Short


Here is the 15 Minute chart for AUDCAD. It consists of Primary Wolfe Wave, Andrew's median line and a secondary Wolfe Wave plotted on the 5 minute chart.

Trade is short at 1.05566 with take profit at 1.05396 and stop loss at 1.05646


The reason for going short is determined by the Median lines. Prices touched the Median line before moving out of the lower median line.

If you look closely, we see that the primary Wolfe wave 2 and 4 also form the trigger line for Andrew's median line. We know that when price moves out of the LML and out of the lower trigger line, it is a sell signal.

Plotting the secondary Wolfe wave on the 5 minute chart also confirms this notion because we have a bearish wolfe wave that is formed. All in all, price is expected to drop to 1.05363. I will try to move my stops and also take profits so as to test this trade. Below the secondary wolfe wave, plotted in Red on the 5 minute chart.




No comments:

Post a Comment