Akil_Stokes
Short

NZDUSD: Invalid Bat but still a Valid Short

FX:NZDUSD   New Zealand Dollar / U.S. Dollar
A few potential trades on my radar this morning including EURUSD             , AUDUSD             & AUDCAD             (Long from overnight), but one that just caught my attention came on the NZDUSD             .

Even if you're new to reading a price chart it should be pretty obvious that the Kiwi has been in a downtrend. During this bearish movement I've been looking for different places to join the party each time the market puts in an outside return (retracement). Our most recent retracement came in the form of a bearish bat pattern.

Now technically the Bat pattern is invalid because of the "X" leg being penetrated, but it still makes from an excellent opportunity to get short as price action is retesting the highs of our previous pullback. The wick on the "big" candlestick also provides me with some clues about the importance of that level.

There a re a lot of these trend continuation setups out there so it's important that you try and find the best opportunity and not overexpose yourself in the markets.

Akil Stokes
Chief Currency Analyst at http://www.TradeEmpowered.com
Akil@Tradeempowered.com /@AkilStokesRTM
Forex Weekend Review Videos:
https://www.youtube.com/playlist?list=PL3pkGkL2zWpHt7X4ZeT0w0n6hk0C8Lwx1
Voted 2017's
4th Most Helpful Trader on Twitter
https://twitter.com/akilstokesrtm

19th Best Trading Channel on Youtube
https://www.youtube.com/akilstokes

Learn to Trade the Markets & Join Our Trading Community
https://tieronetrading.com


As I mentioned NU is not short.
snapshot

Reply
i'm still in this trade short to 67c.
Reply
snapshot

Using caution as this is counter trend. Let's see
Reply
It isn´t a Butterfly then? Or is the D extension of XA not valid?
+1 Reply
Akil_Stokes PRO Henrik-PatternTrading
No, the B leg requirements for a butterfly never occurred
Reply
AH, ok. Still learning patterns. :) What is the requirement for B leg completion?
+1 Reply
Akil_Stokes PRO Henrik-PatternTrading
a 78.6 retracement
Reply
Ok. Thx.
Reply
good trade settup thank you akil!
+1 Reply
Thanks, we'll see if it wants to cooperate. Either way the risk is small
+1 Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out