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 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 pattern.
Now technically the 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" 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.
Chief Currency Analyst at http://www.TradeEmpowered.com
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