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
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NU is long. But according to your BAT pattern this will fall upto 0.664 area.
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How does the bat pattern tell us it will fall to 6640s?
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dhenal_r Akil_Stokes
snapshot
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In no way did that answer the question about Kiwi falling to 6640s
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I guess what I'm trying to say is technically the Bat pattern target would be at 6681's which would simply be a brief barely noticeable pullback even if the market decided to continue higher to the point that you drew out on the daily. So for those traders looking to only trade the pattern and not the bigger move are just looking to get in and out. Make sense?
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same with me, i took this trade too. have a good trade Sensei
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Let's see how it turns out
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True story I'm in for a while ;) So trend continuation opportunity to ~0.6630, T1+T2 or just T1 ?
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It's in the direction of the underlying trend so it's certainly a continuation opportunity. But that's not a question I can answer for you. The best option is do do what you normally do
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good trade settup thank you akil!
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Thanks, we'll see if it wants to cooperate. Either way the risk is small
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Tijmen_K Akil_Stokes
What you recommend for A sl? 0,673?
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depends on where you're looking to take profits, but above the X leg certainly. above 30's will be a safer level but if you're taking bat pattern targets that's not going to give you a good risk reward at all
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It isn´t a Butterfly then? Or is the D extension of XA not valid?
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Akil_Stokes PRO Henrik-HarmonicTrader-Sweden
No, the B leg requirements for a butterfly never occurred
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AH, ok. Still learning patterns. :) What is the requirement for B leg completion?
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Akil_Stokes PRO Henrik-HarmonicTrader-Sweden
a 78.6 retracement
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Ok. Thx.
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snapshot

Using caution as this is counter trend. Let's see
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i'm still in this trade short to 67c.
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As I mentioned NU is not short.
snapshot

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