80%+ of retail traders are short EURNZD.
Why? My guesses are that their RSI's and Stochastic Indicators are all screaming OVERBOUGHT.
The indicators aren't wrong - price is "overbought", if you follow such concepts.
Forget the indicators, look at the rally I have drawn in, starting in the second-half of July to early August. Price started around 1.6600 and stopped just short of 1.7600. That's a thousand pip rally in a few days!
Price can't keep on just going up, can it? Well it did there. I count 9 straight days of massive bullish price action before the first red candle.
So, we have massive bullish momentum in the background.
Then, let's talk about the recent consolidation. I don't see anything bearish. I see price pausing and consolidating.
I see a high, and a higher-high. And I see a local low and I can't even find a second low to compare.
Now, if you'd shorted this pair (and yes, I can certainly see the case being made for a double-top, and yes, I may eat my words here and price may fall), you would have probably put your stop up in the green area I have marked. Makes sense right?
Well, its all those stops sitting there begging to be taken out that add to my long bias today. I'm long already and will be trading this pair on an intraday scale over the next few sessions, strictly long. If price does take out all those stops, it's going to ROCKET off even higher.
Why? My guesses are that their RSI's and Stochastic Indicators are all screaming OVERBOUGHT.
The indicators aren't wrong - price is "overbought", if you follow such concepts.
Forget the indicators, look at the rally I have drawn in, starting in the second-half of July to early August. Price started around 1.6600 and stopped just short of 1.7600. That's a thousand pip rally in a few days!
Price can't keep on just going up, can it? Well it did there. I count 9 straight days of massive bullish price action before the first red candle.
So, we have massive bullish momentum in the background.
Then, let's talk about the recent consolidation. I don't see anything bearish. I see price pausing and consolidating.
I see a high, and a higher-high. And I see a local low and I can't even find a second low to compare.
Now, if you'd shorted this pair (and yes, I can certainly see the case being made for a double-top, and yes, I may eat my words here and price may fall), you would have probably put your stop up in the green area I have marked. Makes sense right?
Well, its all those stops sitting there begging to be taken out that add to my long bias today. I'm long already and will be trading this pair on an intraday scale over the next few sessions, strictly long. If price does take out all those stops, it's going to ROCKET off even higher.
Trade closed manually:
Had two intraday trades, one winner one loser. Long side hasn't been as I expected!