GBPNZD Potential Trend Continuation Pattern
Note: Hey guys, and welcome back for some more chart analysis practice. As you know, I am not taking this trade in real life, and I have not back-tested this particular strategy on the GBPNZD, so I really don't know how this type of trading strategy would work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation, once again, I found this opportunity late and the market already touched my entry twice but then rallied a little and is now sitting above my entry @ 1.8869. So at this point, I am going to wait and see if the market will come back down to hit my entry, and give me an opportunity to hypothetically get involved in this trade. If that happens, I will put my stop loss 10 pips above the highs @ 1.8977 and my target @ 1.8710. Seeing as which the market broke below the previous lows of 1.8832 and then closed below making a new lower low @ 1.8725, I believe that the market will retrace into the 0.618 Fib level @ 1.8869 and then continue to trend down giving us new lower lows. As always guys, we'll just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation, once again, I found this opportunity late and the market already touched my entry twice but then rallied a little and is now sitting above my entry @ 1.8869. So at this point, I am going to wait and see if the market will come back down to hit my entry, and give me an opportunity to hypothetically get involved in this trade. If that happens, I will put my stop loss 10 pips above the highs @ 1.8977 and my target @ 1.8710. Seeing as which the market broke below the previous lows of 1.8832 and then closed below making a new lower low @ 1.8725, I believe that the market will retrace into the 0.618 Fib level @ 1.8869 and then continue to trend down giving us new lower lows. As always guys, we'll just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Trade closed: target reached:
Alright! So this trade played around my entry for awhile and even attempted to stop me out with a big candlestick wick. But eventually the market rolled over and hit my target! Which is always a good feeling. So this analysis ended up being correct, which is awesome!