NZDJPY Short off Retest of Trend Line
If you follow me on various social media, you know I have been long in general on the NZD. However, we have a super solid short entry here. Let's take a look.
On the 4H chart, we can see a trend line that has held for a few months, since March 21st. This is a relatively solid trend line, as it has been respected 5 times. A few days ago we firmly broke that trend line to the downside. At this point, I put this pair in my watchlist to wait for a retest. And sure enough, we're getting one. Here's the 4H chart below. Keep in mind that at the time of this writing, there are still two hours left in this candle.
Now, let's take a look at the 1H chart. The big green candle shows price accelerated into the retest line. However, it was met with a doji, followed by two very bearish candles. Both red candles have long upper wicks (as does the doji) and closed significantly lower. This is a good sign that a reversal is happening.
So, let's enter! I will be entering with 2% risk. However, the RBNZ statement is tonight. If we have not hit TP1 by the time the RBNZ nears, I will likely close half of my position and move stop to entry, and get rid of my TP1. Hopefully we can gather some pips to be in a good position before the RBNZ statement and presser.
I am in short at 78.755 with:
Stop at 79
TP1 at 78.5 (where I will close half of my position and move stop to entry)
Limit at 78
Risk of 2%
On the 4H chart, we can see a trend line that has held for a few months, since March 21st. This is a relatively solid trend line, as it has been respected 5 times. A few days ago we firmly broke that trend line to the downside. At this point, I put this pair in my watchlist to wait for a retest. And sure enough, we're getting one. Here's the 4H chart below. Keep in mind that at the time of this writing, there are still two hours left in this candle.
Now, let's take a look at the 1H chart. The big green candle shows price accelerated into the retest line. However, it was met with a doji, followed by two very bearish candles. Both red candles have long upper wicks (as does the doji) and closed significantly lower. This is a good sign that a reversal is happening.
So, let's enter! I will be entering with 2% risk. However, the RBNZ statement is tonight. If we have not hit TP1 by the time the RBNZ nears, I will likely close half of my position and move stop to entry, and get rid of my TP1. Hopefully we can gather some pips to be in a good position before the RBNZ statement and presser.
I am in short at 78.755 with:
Stop at 79
TP1 at 78.5 (where I will close half of my position and move stop to entry)
Limit at 78
Risk of 2%
Trade active:
Taking half profit here for an early TP1 at 78.57. This is because RBNZ meeting soon. Next target 78.