"Trade Idea Fully Explained" AUD/NZD by ThinkingAntsOk
TRADE IDEA ON AUDNZD
Before explaining the trade we will see the context of this instrument on the Weekly chart:
On the Weekly chart, the main items we can see are:
a)Price broke out from an ABCDE Triangle formation ( Triangles are continuation patterns in this context)
b)After the breakout price tried several times to re-enter to the triangle area without success, we can consider this as a weakness of the demand over the supply.
c) If we consider the Possible targets after a triangle structure of this size is broken, the downside move is huge, so we are going to try taking advantage of this situation on the 4hs chart.
On the 4hs chart, the main items are:
a)Currently, price is on an ascending movement, we don't know exactly where is gonna be the reversal zone but we have 2 different possibilities explained on the chart
b)If the reversal happens, consider to look an entry below the support zone and look for the ascending trendline of the corrective structure as a Take profit zone
c)Remember is really important to set your stop loss correctly and maintain a good risk-reward Ratio, we will update the post if the price goes as expected
*Please note that the above perspective is our view on the market, We do not give signals and take no responsibility for your trades.
Before explaining the trade we will see the context of this instrument on the Weekly chart:
On the Weekly chart, the main items we can see are:
a)Price broke out from an ABCDE Triangle formation ( Triangles are continuation patterns in this context)
b)After the breakout price tried several times to re-enter to the triangle area without success, we can consider this as a weakness of the demand over the supply.
c) If we consider the Possible targets after a triangle structure of this size is broken, the downside move is huge, so we are going to try taking advantage of this situation on the 4hs chart.
On the 4hs chart, the main items are:
a)Currently, price is on an ascending movement, we don't know exactly where is gonna be the reversal zone but we have 2 different possibilities explained on the chart
b)If the reversal happens, consider to look an entry below the support zone and look for the ascending trendline of the corrective structure as a Take profit zone
c)Remember is really important to set your stop loss correctly and maintain a good risk-reward Ratio, we will update the post if the price goes as expected
*Please note that the above perspective is our view on the market, We do not give signals and take no responsibility for your trades.