audcad double inside day explosion

We would like to share a price action trade setup discussed in the War Room chart of the day section. We were looking at the AUDCAD market which was trending very nicely, the mean value was being respected as dynamic support and there wasn’t much sign of bearish activity.

The AUDCAD dropped two consecutive Inside Days on the daily chart in a row as price stalled under an important resistance level.

The upward momentum was strong and had shown no sign of weakness, there was a good chance a breakout to the upside would occur with the core trend pressure. A break of the resistance here was going to cause a nice breakout since it was the only obstacle on the chart containing price.

The breakout

audcad double inside day breakout

As anticipated the double inside day setup produced a breakout and long positions were triggered. The next day however, what looked like a breakout bull trap occurred when a bearish price action signal formed counter to our trade.

This looked like a very bearish red flag warning sign so unfortunately most of us bailed on the setup. The bearish signal didn’t produced any follow through bearish price movement and the trade setup continued to mature into profits.

This setup did produce a very powerful breakout that lasted two weeks, and is still going strong. Multiple inside day formations are a very very powerful catalyst for these explosive breakouts as its been demonstrated here today.

If you like the idea of price action trading, and would like to broaden your knowledge of the setups we show here, you might be interested in becoming a member of our price action war room. If you would like to learn more about the war room check out the details here.

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