Hi traders,
on EURNZD we recently broke into new lows (since mid2015). The next level of daily structure is way down at 145.00 flat. In this case we can see price "free falling" downward, so there's no space for big retracements that allow us to enter the market at good levels. We can see though some simple pattern formations that let the price breathe and give us reasons for entry like this.
This is called a triange formation, it is made up of higher lows with no higher highs. This kind of formations usually continue on the impulse leg's direction. You can trade them entering as soon as price close below the trend line, or you can wait for a better risk to reward and then enter short.
In any case, the nice part of this setup is that second position we can keep for longer targets, such as 145 flat.
I'll wait for a retracement and then sell the market.
If you have any questions, please comment below.
Otherwise, see you in the next chart!
on EURNZD we recently broke into new lows (since mid2015). The next level of daily structure is way down at 145.00 flat. In this case we can see price "free falling" downward, so there's no space for big retracements that allow us to enter the market at good levels. We can see though some simple pattern formations that let the price breathe and give us reasons for entry like this.
This is called a triange formation, it is made up of higher lows with no higher highs. This kind of formations usually continue on the impulse leg's direction. You can trade them entering as soon as price close below the trend line, or you can wait for a better risk to reward and then enter short.
In any case, the nice part of this setup is that second position we can keep for longer targets, such as 145 flat.
I'll wait for a retracement and then sell the market.
If you have any questions, please comment below.
Otherwise, see you in the next chart!
Comment:
We are now in the killzone for potential shorting opportunities. Looking for an engulfing kicker or a double top!
Comment:
Short at 1,4764
Trade active:
First target down at 1,4702
Comment:
Another entry reason in form of a Gartley pattern