The Kijun Sen has just Bullishly crossed upwards on the H1 chart for the AUD/CAD.
However, all other time frames are demonstrating a strong downtrend with Bearish Kumo and Chinkou Span.
So, what to do?
Let's look at the H1 chart a little closer -
1.) The Kumo is still showing Bearish sentiment, although it is starting to thin out a little.
2.) The price action is BELOW the Kumo, signaling a weakened buy indication.
3.) The Chinkou span is steadily rising and could potentially break through the price action.
So how do we utilise this information?
Well, I'm going to hold out from entering a trade right now and give the price some time to develop either way.
If it continues to uptrend another IKH signal will be tripped, such as the Chinkou Span crossing the price action, or the Kumo showing a reversed sentiment. If the price action itself reverses, then the Kijun Sen will recross the Tenkan Sen, and with everything discussed taken into consideration this would be a strong signal to go short on this pair for some potential gains.
Let's return to the AUD/CAD in a few hours and see what has happened.
Cord
