On Monday (January 10th) an inside bar pattern appeared on the British Pound/Australian Dollar (GBP/AUD) pair. The top of the candle forming the pattern (the mother candle) is located at the over 6-month maximum, which makes the pattern worth trading. Today the price broke out of the pattern at the bottom. The MACD has made its maximum and is starting to fall.
The PA+MACD strategy to analyze this pair is based on three objective assumptions. Three questions must be answered in the positive to open an order, as shown in the accompanying graphic.
The PA+MACD strategy assumptions – three objective questions
In the case of the analyzed pair GBPAUD – all questions can be answered in the affirmative. The inside bar is high enough, the breakout has occurred and MACD has changed direction (red).
According to the PA+MACD strategy conditions are met to open a sell order.
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
More current analysis on the group : Trade with Dargo
Friday, 14th of January at 13:00-14:00 GMT– my live trading session here: https://www.xm.com/live-player/basic
In our Facebook group, which you can join anytime: https://www.facebook.com/groups/328412937935363/ you will find 5 simple strategies on which my trading is based. There, every day we post fresh analyses of currency pairs and commodities. You can also visit my channel where I post my trading ideas: https://t.me/TradewithDargo