High Probability Bull for AUDUSD
By StreetPips.com
The chart below shows the AUDUSD daily chart with Ichimoku indicator and candlestick patterns drawn.
Chart from Bloomberg
After a strong downtrend which lasted from the bearish Kumo break in April all the way till late August, we see a bullish Kumo break right around September 16.The future Kumo also performed a bullish Kumo twist, and the green 9 period Tenkan Sen is also currently well above the red 26 period Kijun Sen. These indicators are painting a potential bullish upstart.
For the bulls, the entry also looks attractive. Prices are retracing towards the flat red Kijun Sen line, after a bearish Belt Hold Line pattern indicated with the red letters “BH”. Bearish belt hold opens on high and closes at or near low of candle after a preceding uptrend. The body must be the opposite color of the prevailing trend. There must be a significant gap, no shadow at open and a markedly long body. Right after the bearish BH, prices are heading towards the flat Kijun Sen. This offers a retracement entry for a bullish trade.
Further confirmation of a bullish movement can be made with a thickening future Kumo cloud, as well as the lagging black Chikou Span piercing above the Kumo.
Written By: Streetpips.com – Streetpips.com scans books and websites for trading strategy ideas. We then select those which are programmable, code them, and share these with our members.
