moneymaking
Short

NZDCAD: BEARISH CYPHER & DESCENDING TRIANGLE PATTERNS !!!

FX:NZDCAD   New Zealand Dollar/Canadian Dollar
8 months ago
Hello Traders,

We recently just got the completion of a bearish Cypher pattern within the consolidation range, which is in the form of a descending triangle. We are getting a better price on the Cypher pattern with reduced risk, which is always good. So the Cypher pattern short trade setup is active now. Also notice that we just got a strong bullish breakout out of the descending triangle that we have been ranging in for the past 14 days. But we need to wait for additional confirmation in order to make sure, that this is NOT a false breakout. If the market can stay above the triangle for good amount of time without falling right back into the ranging triangle, then we can look to trade the breakout long triangle pattern.

Notice that the entry of the triangle pattern is within the ranging triangle, so I am expecting some type of pin bar reaction as the market comes back to re-test the breakout level. Thus I am only expecting target #1 of Cypher pattern to be completed before switching to a long position, unless price action gives us some other clues to stay with the Cypher trade. Risk to reward on both patterns is very reasonable, but it can be adjusted based on your own risk tolerance. All targets for both patterns have been labelled on the chart above.

Make sure to always focus on the risk that you are willing to take, rather than the reward, it really makes a huge difference in your trading performance and especially in your trading psychology.

That’s all I would like to cover for this trade setup. If you guys have any questions or comments about this trade, feel free to write in the comment section located under this description section. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. All The Best :)

Follow me on Twitter as well: moneymaking2016


NOTE: The overall major trend is still to the downside, thus I am NOT expecting the long trade setup to be like a home run type of trade, that you can stick with for long period of time.
snapshot

HAPPY GOOD FRIDAY TO EVERYONE IN ADVANCE, ENJOY THE LONG WEEKEND !!!
8 months ago
Comment: UPDATE #1: Target #1 reached. Stops can move to break even. Looking closely at price action to enter long after the descending triangle breakout.
8 months ago
Comment: UPDATE #2: Break even stop has been hit. Short positions are now closed. The long entry also has been triggered.
8 months ago
Trade closed: target reached: UPDATE #3: Descending triangle breakout target reached. All long positions are now closed.
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