FX:GBPNZD   British Pound/New Zealand Dollar
186 7 8
READ CHART FOR DETAILED VERSION

  • PIN BAR HIGH INVALIDATED
    SHORT'S STOP ARE TRIGGERED
    MORE BUYS ARE TRIGGERED
    PUSH PRICE HIGHER TO BIG MONEY'S SELL ORDERS
    FOLLOW BY PLUNGE.
    FOLLOWED BY LONG'S STOP TRIGGERED.
    FOLLOWED BY MORE PLUNGE.

IN SHORT, THEY ARE CREATING VOLUME THROUGH STOPPING TRADERS OUT.

HIGH RSI READING D1
H4 RSI DIVERGENCE
KEY RESISTANCE 2.0800 - 2.0900
USUALLY I WONT ATTACH ATR, BUT I HAVE TO HIGHLIGHT THAT GBPNZD             IS TRADING AT 244 PIPS ATR.
ONE OF THE MOST VOLATILE PAIRS I OBSERVE.
EVEN THE H1 HAS AN ATR OF 63.


THIS IS HOW I WOULD DESCRIBE STOP HUNTING, WHICH IS HIGHLY PROFITABLE IF ANTICIPATED WELL.
SORRY FOR THE LONG EXPLANATION BUT IT IS KEY TO UNDERSTANDING WHY THIS TRADE WOULD WORK.
SUBSCRIBE COMMENT LIKE IF YOU AGREE OR DISAGREE.

BUT OF COURSE, DUE TO THE RECENT STRENGTH OF GBP. PRICE COULD SHOOT OUT OF 2.1000, MAKING THIS TRADE INVALID. TRADE IS HIGHLY SPECULATIVE, RISKY. STRONG CONFIRMATION IS NEEDED.
Casey_Yeo
2 years ago
How do you define 'reliable pin bar' mate?
Reply
PriceActionTrading Casey_Yeo
2 years ago
Hi casey, well for this trade i would look for H4 pin bars.
(Will be great if D1 closes with an awesome pin bar.)
ATR for H4 is 100 pips, thus the pin bar must be :
- more than 100 pips
- closed below 50% of the body
- bearish in nature
- cutting but not closing above 2.09 ( this is assuming the resistance there could contain the push)
- if not, cutting but not closing above 2.1000 (this is the ultimatum, huge volume i would speculate).

Please correct me if im wrong, would like to hear your comments too :) professional pin bar trader.
+1 Reply
Casey_Yeo PriceActionTrading
2 years ago
Although I'm not a full-time professional trader, I will like to comment that every trader has their own defined rules to qualify as a valid/quality pin bar to trade. But I doubt there is such thing as 'reliable'. :)
GBP seems strongest and NZD weakest at the moment though.
Reply
Also please note that due to the surge in GBP recently, RSI values may not be that "accurate". Thus although i have pointed out that there is a RSI divergence H4 and high RSI value D1. One should not rely solely on RSI to determine this entry.
IMO RSI is good for trend based and "normal" ranging currency pairs.
I wouldnt exactly classify the 800 pips move in 6 days or so as "normal".
But still, There you go RSI divergence H4.
Reply
moneymaking
2 years ago
Hey price action, Totally agree with you on this, Looking for good selling conformation. Do you think the effect of the elections could keep it pushing higher than 2.1000?
Reply
PriceActionTrading moneymaking
2 years ago
Im just going to observe this pair to see how far it can go and if any confirmation comes along i will assess it accordingly then.
+1 Reply
RiccardoAnnoni
2 years ago
Maybe it is the case for waiting Wednesday where BOE will show its hand. Then we all know if sell GBPNZD or buy it at bargain price. :-)
Reply
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