REGULAR RHOMBUS AT THE PIVOT LINE OF A RECTANGLE RANGE
The regular rhombus is a powerful reversal pattern taught by my mentor Rodney Ahenkan (Papa Smurf). I tend to look for it at reversal areas, especially at the pivot lines and support/resistance areas of the RECTANGLE STRATEGY (again as taught by Papa Smurf)
On NZDCAD, I see it has lined up nicely. There are quite a number of indications for a reversal at where price is currently:
1. Price is at the pivot line of my RECTANGLE (the blue line on the chart). The pivot line is a potential area of reversal. If price fails to break below it, then it would likely return to the top of the RECTANGLE.
2. The formation of the REGULAR RHOMBUS (a reversal pattern) at the PIVOT LINE of the RECTANGLE (a potential reversal area).
3. The PIVOT LINE is being tested for the third time. The previous two times, price was pushed back up.
4. There is a clear MACD DIVERGENCE.
All these are powerful technical indications for a possible price reversal.
On the FUNDAMENTAL side, there are 3 red-folder news releases for NZD at 1:00 am this morning, to be followed by an RBNZ Press Conference an hour later.
I would therefore wait to see what price does AFTER the news releases. If it agrees with my analysis, then we're good to go.
On NZDCAD, I see it has lined up nicely. There are quite a number of indications for a reversal at where price is currently:
1. Price is at the pivot line of my RECTANGLE (the blue line on the chart). The pivot line is a potential area of reversal. If price fails to break below it, then it would likely return to the top of the RECTANGLE.
2. The formation of the REGULAR RHOMBUS (a reversal pattern) at the PIVOT LINE of the RECTANGLE (a potential reversal area).
3. The PIVOT LINE is being tested for the third time. The previous two times, price was pushed back up.
4. There is a clear MACD DIVERGENCE.
All these are powerful technical indications for a possible price reversal.
On the FUNDAMENTAL side, there are 3 red-folder news releases for NZD at 1:00 am this morning, to be followed by an RBNZ Press Conference an hour later.
I would therefore wait to see what price does AFTER the news releases. If it agrees with my analysis, then we're good to go.