News

AUD/CAD – “W” for Win

CMC Markets

By Michael McCarthy, Chief Market Strategist, CMC Markets Australia Uncertainty, ambiguity, approximation – all part of the traders’ world. So when a chart signal sets up perfectly it’s often welcomed as a small dose of clear instruction from the market. And the “W” reversal in AUD/CAD is as good as it gets. The chart shows the action. The double bottom gives the points of the “W”. Note how the first falls outside the Bollinger Bands, the second within. This is a key requirement for the pattern, and combined with the narrowing of the BBs shows volatility is lower – the (theoretical) signal that the turning point is passed. Strictly speaking the breakout occurs at the close of the blue candle immediately after the second low point.


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.