http://i.imgur.com/6wuUdw4.png
Looking like a potential change of pace, EUR/AUD has had the neckline of a recently formed "double top" pattern broken, and has formed an inside bar with a bearish rejection candle body.
Price crumbled downwards after a failed attempt of breaking past a swing high, and found itself right onto the neckline of a recently formed double top pattern, which is considered support. Support couldn't hold, and price broke through to form an inside bar.
Before considering dipping into the market, we notice that price is far away from the trend mean. We'd prefer to see price be closer to the trend mean before taking short positions in this case, and we'd rather see a price action signal dropped off after a correctional/retrace move.
It's worth keeping note of what happens in this market.
Looking like a potential change of pace, EUR/AUD has had the neckline of a recently formed "double top" pattern broken, and has formed an inside bar with a bearish rejection candle body.
Price crumbled downwards after a failed attempt of breaking past a swing high, and found itself right onto the neckline of a recently formed double top pattern, which is considered support. Support couldn't hold, and price broke through to form an inside bar.
Before considering dipping into the market, we notice that price is far away from the trend mean. We'd prefer to see price be closer to the trend mean before taking short positions in this case, and we'd rather see a price action signal dropped off after a correctional/retrace move.
It's worth keeping note of what happens in this market.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies