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AUD:CAD - Daily. Bearish Reversal Set Up

CMC Markets

  • This chart has made a head and shoulders formation
  • Reversal traders would sell on a confirmed break below the neck line
  • The higher time frame weekly stochastic oscillator is now trending down from the overbought zone confirming prospects for a short position.
  • I have also noted a W formation Bollinger Band set up on this chart. Under this strategy you would have bought at .8765 and closed out today at .9875. This is the same strategy as the GBPNZD set up I posted a couple of days ago. This is one of those times when traders who use both the Bollinger W reversal and Head & Shoulders strategies might find themselves taking profit on the long trade and reversing to go short

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