This week's quick bullish Gartley on the Kiwi was overrun by a strong dollar and encouraging words from Yellen.
On the daily we can see that we just put in a very strong bearish week. The long term bull-trend channel was broken to the downside. A Libra Pattern has formed. My open short position from my previous Kiwi post is doing very well. Next week I will be looking to add more to my short position on some sort of pull back. Wait for price action to give you a signal on the lower time frames.
This can be a very powerful breakout to the downside as we have a lot of room to go and some serious dollar momentum.
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We have also closed below the 200DMA. Last time this happened we saw a major trend switch for over 2,000 pips. Keep an eye on this one folks.
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1H
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Nice double top on the 4H solid opportunity to get invovled
The gap down in early Aussie trading this morning confirms your view...
Would you expect the gap to fill before retracing back down?
NickofJupiter
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Have not studied gaps much. I know they all do fill, eventually. Wouldn't depends on it but I will let the price do its thing. I would be looking to add to my short at the fill around .7005. If it doesn't fill, the other opportunity I will be looking for is a close below this neckline for bearish confirmation. Past that would be a close below the neckline and then a retest. Opportunities to get involved should always appear to the patient ones! Goodluck @The_Duke,
The_Duke
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@VitruvianTrader, Gap closed quickly.
Now... those opportunities you mentioned to get in short - I'm watching closely :)
(Oh and thanks for sharing)
The_Duke
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I'm changing from a few years of Options trading to Forex trading and finding quite a lot of new terminology.
This looks good @VitruvianTrader , thanks for sharing - I'll watch with interest next week. Right now I'll go and investigate a "Libra pattern" :)
NickofJupiter
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No problem. @The_Duke, it is essentially a traditional head and shoulders pattern. If you look at my last 10 posts or so, there should be a few Libras which have played out pretty well. It is probably my favorite pattern to trade.
The_Duke
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@VitruvianTrader,
Ha, I thought it might have been the ol' head and shoulders, after all, you had them highlighted to make it easy for me.
I've used that many times myself in Op trading. Breaking that neckline pays off big time.
I'll go through your posts and learn a lot, I'm sure, thanks again for sharing the knowledge mate.
Would you expect the gap to fill before retracing back down?