Trade Setup:

18 Long and Short Opportunities in AUDCAD (One Scratch, One Maybe Runner)

This entry was a little tricky. Most traders would have been able to see the divergence entry, which was the first viable entry in the support zone on the 15-minute charts. The second entry occurred after it broke below the low, which would normally nullify the entry criteria. However, the strong rejection bar, which was also a bullish engulfing pattern, was reason enough to enter this trade. This was a fakeout breakout pattern that is an acceptable entry precisely because it faked out anyone who was trying to sell the breakdown of the support area.

Price is currently at the projected resistance as described in the original article, and so the hourly chart is setting up for an entry.

Later: The short trade is turning into a runner for the history books. It took two tries to get on board the move, but it was worth it in the end.

18a Long and Short Opportunities in AUDCAD (Two Short Trades, One Loss, One Huge Runner)