AUD:USD - Hourly. Potential sell set up

AUD:USD - Hourly. Potential sell set up

Hi again,

My last post gave some thoughts on a strategy for selling off trend line resistance on the daily chart.

The hourly chart below has details of a potential set up in the same direction that may appeal to traders operating on a shorter time frame.

This is an example of a possible Gartley sell set up.

The rally from X has so far been in an ABC or 3 swing formation.

Fibonacci techniques have been used to project a possible zone for the final up swing in the correction to end

This is at around 103.90. At this level 2 Fib projections form a cluster. These are a 78.6% retracement of the O/X decline and a projection that the swing from B to C wil be the same size as the X/A  swing.

There is no set up unless price actually makes a confirmed trend peak at or very close to this cluster zone. Confirmation requires a close below the candle making the peak

The initial stop could be placed just behind the peak at the cluster zone and an initial profit target could be half way between the points X and B

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