AUDUSD H1 Bullish Bat Pattern - 29 July 2011

29 July 2011

Bullish Bat Pattern On AUDUSD Hourly Chart.

This pattern is validate by 0.50 retracement of XA at B point and 0.886 retracement of AB at C point.

PRZ:
1.618BC @1.0955
0.886XA @1.0948
1.618AB=CD @1.0944

For a summerize,AUDUSD is in the uptrend for quite a long time. This pair just formed a double top of all time high at 1.1075-1.1080.
Convergence of all important fib level at 1.0940-1.0955 will determine if this pair will continues in the predominant uptrend or should reversal is coming.We also have a demand zone at 1.0930-1.0940 just below the PRZ. I will be looking to go long on this pair on the price action testing the PRZ. One thing to remember as B point is below 50% retracement of XA, this pattern could be a Crab pattern if this Bat pattern is fail. However for a Crab pattern PRZ will be more extreme as important fib level will be at 1.618XA which is at 1.0840.

UPDATE

I had enter my long position at 1.0950. Price action struggling challenging PRZ for a few hours. I had been stopout at 1.0915 after PRZ is failed to hold price action from short term downtrend. However sharp reversal could be seen after my stoploss been hit. This is another case of pure friday stoploss hunt for me. I had lost -35 pips in this trade.

Read more »

Posted in: AUDUSD,Bat,Bullish

AUDUSD Bearish Crab

Bearish Crab Pattern On AUDUSD H1 Chart

• B point @0.50XA
• C point @0.786AB

 PRZ Zone :

• 1.618XA retracement at 1.0730
• Extreme 3.618BC projection at 1.0710

Price over time give an extra confirmation of this pattern formation. Vertical line on chart is fibonacci time zones which calculate the time of completion pattern.Best time is between 0.382 to 1.00 fibonaci time zones.Although i'm prefer 1.00 time zones as usually there will be sharp reversal at this time.I hope price action will test 1.0730 before 1.00 time zone which could give best opportunity to short this pair.
UPDATE

 Mistake :
Afraid of missing the trade i had entered this position too early. There are two position i had entered,first is at 1.0672. Without waiting for a retest of PRZ i entered this trade which cost me in the early.Luckily on second retest PRZ manage to hold predominant trend and clear reversal could be seen.





UPDATE

Clean breakout on M5 demand zone.
Targeting on the next demand zone at 1.0570-1.0580.SL move to breakeven





UPDATE

1.0570-1.0580 demand zone on 5Min chart

Imbalance between buyer and seller in 1.0570-1.0580 demand zone.
Lock in profit above demand zone.

Breakout at 1.0570-1.0580 demand zone.  Look for a retest at 1.0525-1.0545 demand zone.
Nice Rally!!

Update : Exit position at 1.0575 with 120pip profit.

Read more »

Posted in: AUDUSD,Bearish,Crab