AUDUSD, 4hr tf, descending channel Elliott Waves setup

23 окт. 2020 г.

Hello my friends,

For today i found a good setup to trade.
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Also check my bio for a good content.

Today i found that AUDUSD moving inside this downward channel and it looks like it is following the Elliott Wave theory.

So we will jump into counting the wave.
I am planning to sell this pair as it is now making the 4th wave ascending triangle pattern. For some people they could see this as a rising wedge.

You could see that at the end of this triangle there is a horizontal resistance and descending trend line as well.
Pretty much we could say 0.7150 area is a confluence of resistances.
Our stop loss will be at the wave-1 area 0.7200 becase according to the elliott wave rules, wave-4 can't touch wave-1 area
Touching it will invalidate our analysis and sell setup.

Sell AUDUSD 0.7150
Stop loss 0.7200
Take profit 0.6980

RR ratio 1 : 4.2
Use only 1-2% risk
Good luck

Disclaimer : I sold AUDUSD from 0.7150