NZD/USD: Bearish bat or bullish AB=CD?
One of 2 patterns could be forming and both could confirm a possible downtrend setting in.
1. A bearish bat could complete at a point where PA test the broken trendline, after which the downtrend could continue
2. The downtrend could continue right away and a bullish AB=CD could be formed at or below a lower trendline, signalling a possible pullback or re-test of broken trendline. A significant pullback at the lower trendline could coincide with a possible alt 1.27AB=CD also, this would invalidate the AB=CD on which the trade on the chart is based.
Trades for both scenario's on chart (no trade if the alt bat scenario is confirmed (preferably a pullback to 50% of CD) ).
Whenever 1 of the 2 patterns completes the other one will be invalidated.
Targets could be adjusted depending on where PA potentially reverses.
1. A bearish bat could complete at a point where PA test the broken trendline, after which the downtrend could continue
2. The downtrend could continue right away and a bullish AB=CD could be formed at or below a lower trendline, signalling a possible pullback or re-test of broken trendline. A significant pullback at the lower trendline could coincide with a possible alt 1.27AB=CD also, this would invalidate the AB=CD on which the trade on the chart is based.
Trades for both scenario's on chart (no trade if the alt bat scenario is confirmed (preferably a pullback to 50% of CD) ).
Whenever 1 of the 2 patterns completes the other one will be invalidated.
Targets could be adjusted depending on where PA potentially reverses.
Trade closed: target reached:
Targets reached but didn't ger the chance to enter, short 1.5 pips...
Hopefully I'll get another chance to enter before the first target is hit, adjusted my entry by 3 pips... ;-)