NZDUSD - New Zealand at decision time!
Not financial advise. Do your own research. The ideas shared here are the personal opinions of the BitDoctor team. Trade at your risk.
I was alerted to this setup from a good friend of mine and figured it was worthy enough to put up here. This is a super clean pitchfork setup. Not a wacky Schiff, Modified, or Inside, but just a regular plain old pitchfork.
Usually when this happens, you've got an 80% probability of hitting that median line. We haven't quite gotten there yet, though. We're finding some support at the lower trendline of this pitchfork but I'm not quite convinced it'll last.
Here's the data:
1. Bearish divergence back a few candles on the 4H timeframe shows weakness. You can see what happened the last time this happened.
2. Continued rejection prior to the median line on the pitchfork... more weakness.
3. Momentum on that last impulse was actually pretty good which leads me to believe another push is likely.
So, what does that mean from a trade setup standpoint. You might consider going long here, but if you do, you should put a stop loss at around .687 which is pretty tight but if it falls below that, this trade is invalidated.
The reward ratio here is absolutely incredible with little risk at stake. If I traded forex, I'd be all over this one.
I was alerted to this setup from a good friend of mine and figured it was worthy enough to put up here. This is a super clean pitchfork setup. Not a wacky Schiff, Modified, or Inside, but just a regular plain old pitchfork.
Usually when this happens, you've got an 80% probability of hitting that median line. We haven't quite gotten there yet, though. We're finding some support at the lower trendline of this pitchfork but I'm not quite convinced it'll last.
Here's the data:
1. Bearish divergence back a few candles on the 4H timeframe shows weakness. You can see what happened the last time this happened.
2. Continued rejection prior to the median line on the pitchfork... more weakness.
3. Momentum on that last impulse was actually pretty good which leads me to believe another push is likely.
So, what does that mean from a trade setup standpoint. You might consider going long here, but if you do, you should put a stop loss at around .687 which is pretty tight but if it falls below that, this trade is invalidated.
The reward ratio here is absolutely incredible with little risk at stake. If I traded forex, I'd be all over this one.
Comment:
It would appear that we're breaking out of this trendline and heading down to the lower buy zone. I wouldn't set a blind order at .67x but wait for some kind of confirmation that a bounce will be seen there, otherwise we will expect to see a bounce at .668 which is at the 61.8% retract of the larger structure. If that fails, looking even lower closer to .664 or .662
