Going back to my analysis on the bigger time frame of NZDGBP, we can see the moving to take a closer look on the 15 minute chart, that the price action has made a lower high and a lower low signifying that the price action will or has reversed as it is at a key resistance level. Additionally, we can see that we have divergence on the histogram signifying a loss of momentum in the price action. To get further confirmation, we would like to see the price action break short through the 15 minute support at point A. The price action will then retrace to test this support as its new resistance. We then enter short at the swing low of the break, and place our stop at the point B swing.
Happy trading - The Trading Box
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Now the price action has broken the support at point A, we will wait for the retrace.
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Retracement has tested the new resistance at point B. We just have to wait for a break of the low to enter the trade.
Trade active
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Trade entered with my stop placed at 52174
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This was a great entry set up and a perfect example of how to enter a trade. Lets now see how long this continues to go for.