Hello traders,
We were in up trend in NZDCAD then we had huge consolidation period making rising wedge January 22, 2019 to February 06, 2019. Finally Market broke the wedge and moved according to expecting as rising wedge is indication of trend reversal (after 3 move generally). Market Broker the wedge and immediately rejected by demand zone (old demand zone) 0.8920---0.8930. Market moved up and during in up trend market made new demand zone 0.8975----0.8985. Market should have continued moving up as the trend was bullish but sellers showed their presence and immediately pulled the things back and price dropped till 0.8936. Interesting to note is that market is rejected by demand zone (new demand zone) as well. Rejection from new demand zone is also very beautiful i.e. full candle has not closed inside demand zone i.e. market kissed the demand zone with pin bar which indicate bearish trend.
Trade setup
Two possibilities are there
i. if market move up and kisses 0.8975---0.8985 area then we will have very huge short set-up with very low risk and high reward.
ii. if market breaks old demand zone and go down 0.8920 then we will expect a pull up till 0.8920---0.8930 that will also be very good short set-up. I will update in my channel. Kindly like my idea, follow me on tradingview and comment your thought. Thanks.
We were in up trend in NZDCAD then we had huge consolidation period making rising wedge January 22, 2019 to February 06, 2019. Finally Market broke the wedge and moved according to expecting as rising wedge is indication of trend reversal (after 3 move generally). Market Broker the wedge and immediately rejected by demand zone (old demand zone) 0.8920---0.8930. Market moved up and during in up trend market made new demand zone 0.8975----0.8985. Market should have continued moving up as the trend was bullish but sellers showed their presence and immediately pulled the things back and price dropped till 0.8936. Interesting to note is that market is rejected by demand zone (new demand zone) as well. Rejection from new demand zone is also very beautiful i.e. full candle has not closed inside demand zone i.e. market kissed the demand zone with pin bar which indicate bearish trend.
Trade setup
Two possibilities are there
i. if market move up and kisses 0.8975---0.8985 area then we will have very huge short set-up with very low risk and high reward.
ii. if market breaks old demand zone and go down 0.8920 then we will expect a pull up till 0.8920---0.8930 that will also be very good short set-up. I will update in my channel. Kindly like my idea, follow me on tradingview and comment your thought. Thanks.
Trade active:
Following route 1
Trade closed: target reached