For the analysis of NZD/USD, I identified the long term trend of the currency pair. In this case it was an uptrend therefore I was looking for a Long
position, I used the 4 hour chart in order to find the long term trend and identify my position and then used the 15 minute chart in order for me to
identify potential trade set-ups. Therefore, on the 15 minute chart I looked for the most recent ENDED session of an UPTREND and located the SWING LOW of this trend and the SWING HIGH, and then used the Fibonacci retracement tool dragging the tool from the SWING LOW - SWING HIGH.
Next I identified a DESCENDING TRIANGLE in the CURRENT trend of the market which is a DOWNTREND and noticed that price had broken support out of the triangle and price is also around the 61.8% FIB level. This indicates to me that price is due a reversal soon and there is just one more step before a full CONFIRMATION to me, which is the RSI Level, once price breaks BELOW 30 on RSI and then price starts to move back up ABOVE
the 30 RSI then there is a STRONG indication to enter the market at a LONG POSITION.
Please let me know what you think of this trade set up :)
position, I used the 4 hour chart in order to find the long term trend and identify my position and then used the 15 minute chart in order for me to
identify potential trade set-ups. Therefore, on the 15 minute chart I looked for the most recent ENDED session of an UPTREND and located the SWING LOW of this trend and the SWING HIGH, and then used the Fibonacci retracement tool dragging the tool from the SWING LOW - SWING HIGH.
Next I identified a DESCENDING TRIANGLE in the CURRENT trend of the market which is a DOWNTREND and noticed that price had broken support out of the triangle and price is also around the 61.8% FIB level. This indicates to me that price is due a reversal soon and there is just one more step before a full CONFIRMATION to me, which is the RSI Level, once price breaks BELOW 30 on RSI and then price starts to move back up ABOVE
the 30 RSI then there is a STRONG indication to enter the market at a LONG POSITION.
Please let me know what you think of this trade set up :)