NZDCAD: SIMPLE PRICE ACTION BASED TRADE SETUP ON DAILY !!!
Hello Trader,
This short trade setup on FX:NZDCAD is simply based on current price action and the key levels that are labelled on the chart above. As we can see that after every consolidation periods (yellow lines) we got breakouts in the form of strong impulse moves (blue arrows). After being in a strong impulse move for the past 4 weeks, the buyers seems to be running out of steam. Keep the 0.90000 key psychological round number in mind, most likely to act as strong resistance level . See the chart above for more detail.
Below is the list of valid reasons for placing short pending orders:
1.) Bearish Pin Bar formation right at key psychological round number of 0.89000
2.) Bearish Pin Bar formed exactly at 200 day moving average, which is now currently acting as strong resistance
3.) Strong RSI Bearish Divergence
4.) From historical perspective, market retraced most of the time AFTER strong impulse moves
ENTRY: 50% of the Bearish Pin Bar's wick
TARGETS: 1st @ 0.88049; 2nd @ 0.87139; 3rd @ 0.85152
STOPS: 20 pips above the Bearish Pin Bar's high
NOTE #1: Each target is based on key structure levels (previous swing highs or previous swing lows)
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. 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. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
This short trade setup on FX:NZDCAD is simply based on current price action and the key levels that are labelled on the chart above. As we can see that after every consolidation periods (yellow lines) we got breakouts in the form of strong impulse moves (blue arrows). After being in a strong impulse move for the past 4 weeks, the buyers seems to be running out of steam. Keep the 0.90000 key psychological round number in mind, most likely to act as strong resistance level . See the chart above for more detail.
Below is the list of valid reasons for placing short pending orders:
1.) Bearish Pin Bar formation right at key psychological round number of 0.89000
2.) Bearish Pin Bar formed exactly at 200 day moving average, which is now currently acting as strong resistance
3.) Strong RSI Bearish Divergence
4.) From historical perspective, market retraced most of the time AFTER strong impulse moves
ENTRY: 50% of the Bearish Pin Bar's wick
TARGETS: 1st @ 0.88049; 2nd @ 0.87139; 3rd @ 0.85152
STOPS: 20 pips above the Bearish Pin Bar's high
NOTE #1: Each target is based on key structure levels (previous swing highs or previous swing lows)
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. 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. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
Comment:
UPDATE #1: Hello everyone, our short entry has been triggered. All the BEST :)
Comment:
UPDATE #2: Daily close ABOVE 200 MA: indication of buyers. Only a daily close back BELOW the 200 MA would falsify or negate the presence of these buyers :)
Trade closed: stop reached:
Hello everyone, unfortunately our stop loss has been reached. All positions are now closed for this setup. Focusing towards future trade setups :)
Nice, but I'd be careful with the Kiwi. I'm trading it only on the long side for now.
Nice demonstration of structure analysis.
Nice demonstration of structure analysis.
Reply
Hey mate, Thank you and yes I will stay cautious. Appreciate the advice :)
Reply
Shorting under that highest low is fine, let's see how it goes.
I'm analyzing usdcad, seems interesting in the 4h chart.
I'm analyzing usdcad, seems interesting in the 4h chart.
Reply
Yeah, we are likely to see some sideways price action on this pair before going higher. Let's wait and see :)
Reply
Same view. I would rather prefer shorting this daily rejection bar, 10pips below it. I'm extra conservative and prefer to be swept into a trade. If price is indeed going down, then I should be activated. ;) 
Reply
My conservative entry saved me. Order not triggered. Price caught up with invalidation point. I have cancelled trade. Would look to short at higher level= Plan B ;)
Reply
Hey mate, yeah great work. Will also look for better short entry price :)
Reply
I am short but my one worry is crude isn't being too healthy at the moment making the CAD play up!
Reply
Hey mate, yeah crude is currently in no mans land. I am expecting crude to go lower in the coming week or 2 but we are getting pretty close to an explosive move :)
Reply