EUR_NZD has reached a confluence of support lines, thus I am bullish and I am looking to enter a long trade. For us to enter a long trade, we need to see the conclusive breakout of the resistance of the minor falling channel. Wait for the confirmed breakout, go long on pullback, and Enjoy 4:1 risk reward. IF there is NO breakout-setup is invalid. And we do NOT enter a long.
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@katrinah983, hi, thanks for the question! The price didn't brake out of the resistance, and as i said in the Video, we enter the trade ONLY IF it happens.
Secondly, the SL would have been at 1.74321 so the price didn't go below it. I am still watching this pair. If it bounces up and breaks the resistance-then I'll still go long. The level is a broad area, not a line, so if the price does some wiggle before going my way, its ok. Thats why we require confirmation of the breakout, to increase the success probability of the trade.
Meanwhile, watching! Hope this helps.