Happy Wednesday! As we continue our study of this pair USD/ZAR we see price is at a very key point in the market. The market opened on Sunday with a gap. Price continued it's descent and pulled back to the 38% key fib level, which is also right at the market open gap point. Will price trade above Sunday market open, which will lead us to higher price, or will price continue down after the pullback (rhetorical question). For now it's a good watch or perhaps a scalp. This is a study for demonstration and educational purposes only. Thanks for studying. We should visit back and play forward to see how price reacted, which helps us to build knowledge for future trade ideas. Sometimes the best trade to make is no trade at all, while we study price action. Please note, the arrows are not pointing towards a particular take profit area, but I am showing that price COULD reach these points. How do we know for sure? WE DON'T. We must continue to study price action along the way to gain better insight. Price action and market structure is EVERYTHING when studying for trade ideas. Price doesn't have to reach particular points. We see what the market is doing and REACT accordingly. Protection of capital is key. Please study progression of my previous ideas below to aid in your study. Study is most important versus taking signals. You build knowledge to call your own trades, independent of others traders ideas which are all speculation as well. We can only speculate, not dictate the markets. Feel free to offer your comments as well as we study the markets.
Comment:
Clear rejection..price is not ready to rally up. Definitely canceled out any reason to buy at this present time.Remember the market is dynamic.. please see the update at this link which shows the sell signal which I was studying..We had a clear rejection and a re-test which signaled a sell. Take profits are subject to change based on price action along the way
Comment:
Please scroll through the play button of the original idea to see how this idea played out. You see we are just a few pips away from the first take profit area. Remember, take profit areas are not exact targets, but are moreso zones. If you monitored progress of this trade and took the sell signal, be sure to adjust your stop loss or close with profits before the end of New York session today.
