This pair has been trading in a fairly robust horizontal channel range since mid March and the market has obeyed this channel range nicely. NZD suffered heavy losses across the board on Friday represented by the HUGE bearish engulfing candle here which is preceded by several more bearish candles in the preceding days. I will not be entering this trade myself as there seems a decent amount of confidence to the downside but I am merely pointing out some analysis here and some reasons for which to go long here and target the channel top/at least some retracement.
This is the first engulfing candle in this channel which is what has put me off the trade, hence if I were to place this trade I would set it as a buy stop again whereby the market recovers 20 pips or so from Friday's close before placing me in the trade.
Best of luck traders - I am not in this trade but think it's a robust enough idea anyway. I am putting a few ideas out this week and, reminder, thanks to my risk reward ratio I only really need 2-3 to win to come out on top (my TP's are usually 200-450 pips and SL between 100-150 pips). So if it's winning ratio you want then I am NOT your guy but I hope to capture some of the big moves!
This is the first engulfing candle in this channel which is what has put me off the trade, hence if I were to place this trade I would set it as a buy stop again whereby the market recovers 20 pips or so from Friday's close before placing me in the trade.
Best of luck traders - I am not in this trade but think it's a robust enough idea anyway. I am putting a few ideas out this week and, reminder, thanks to my risk reward ratio I only really need 2-3 to win to come out on top (my TP's are usually 200-450 pips and SL between 100-150 pips). So if it's winning ratio you want then I am NOT your guy but I hope to capture some of the big moves!