AUDCAD LONG

101
Entry price: $0.9371
Take profit:$0.9650
Stop loss: $0.9109


Observing the movement price on the chart, we can point out that there was a really downtrend and then, during the last few month, a new lateral range (range without any strong trend) is made up on the chart.
Looking at the price inside the range, we can find some information that suggests us that price could get out from lateral range soon.
First of all MACD line crossed above the signal line, indicating a buy signal. Regarding Bollinger bands, price has also crossed above the simple moving average (middle band), indicating a rise in the price, Moreover when the bands come close together, constricting the moving average, it is called squeeze. A squeeze signals a period of low volatility and it could be considered a potential sign of future increased volatility and possible trade opportunity. We also notice a double bottom inside the range so we should wait for the price break out the neckline, confirming our idea about uptrend.


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