Three Drives pattern in an Expanding diagonal on AUDUSD

30 Eki 2015

A Bearish Three Drives pattern is forming in an expanding diagonal. I am expecting long between Psych level @0.7 and strong resistance level @ 0.7587. It is also being supported by nice Hidden Divergence on multiple indicators. After the three drives pattern & expanding diagonal is completed, you can expect a good down move in the next 1-2 months.

Risk averse traders: Please enter trade after you find a good divergence (not hidden) in lower time frames to support Hidden Divergence to enter.

(Always remember that Any Divergence on Lower TF + Hidden Divergence on Higher TF is very strong reversal signal. Additional confirmation would be if there is a crossection of Gann angles from Tops and bottoms.)

Multiple entries on Long term and Short term..

Medium - Long term entry Long @ 0.7.

For short term entries on AUDUSD, Please check the picture below. We start with one small short positions followed by Long entry on Bat Pattern.
Currently a long position is also possible in the correction phase. Comment for questions or different views.


Happy Trading,

Regards,

Jeevan. K