Hello traders I took 204 pips out of the downside on my previous idea where I suggested shorting the NZDUSD a few days ago. But now it's time to look to buy to the upside and find long opportunity. There's a nice trade potentially forming for everyone to keep their eye on for the near future.
As it stands, we have 2 harmonic patterns that have completed, we have a bullish Cypher pattern which literally completed just a little while before trading closed and a bullish Shark pattern which completed a while back. In my eyes the bullish shark pattern has overshot on its final D leg, and even though some people might trade it, I think most peoples eyes will be on the cypher pattern that has completed
I applied fibonacci extension and a point of interest to me is the 1.414 fibonacci extension. This level coincides with structure (Represented by the drawn in black long rectangle), and above this we have 1.272, which also coincides with the mess we can see right on the X leg of the Cypher pattern. These top me are turning points for the markets where I think pattern traders will recognise the Cypher pattern and begin trading it in either the 1.272 or 1.414 Fibonacci area.
There is a long term hidden support line i've also found, (Thick blue line), this line lands within the 1.272 and 1.414 extension zone, supporting a bullish movement at these levels. I will be looking to definitely buy in these areas.
There has been some very bearish candles the last couple of days demonstrating a accelerated downtrend, and the stochastic RSI still has signs of being in a bearish sentiment, and the downward move on the stochastic RSI has not fully completed and crossed. I think the logical outcome of this is that the move continues downward and eventually hits the 1.272 or 1.414 extension hits on that structural support area and that's when the long opportunities will appear.
I have no doubt a long opportunity isn't too far off, but I don't think we're there just yet.
Good luck traders
As it stands, we have 2 harmonic patterns that have completed, we have a bullish Cypher pattern which literally completed just a little while before trading closed and a bullish Shark pattern which completed a while back. In my eyes the bullish shark pattern has overshot on its final D leg, and even though some people might trade it, I think most peoples eyes will be on the cypher pattern that has completed
I applied fibonacci extension and a point of interest to me is the 1.414 fibonacci extension. This level coincides with structure (Represented by the drawn in black long rectangle), and above this we have 1.272, which also coincides with the mess we can see right on the X leg of the Cypher pattern. These top me are turning points for the markets where I think pattern traders will recognise the Cypher pattern and begin trading it in either the 1.272 or 1.414 Fibonacci area.
There is a long term hidden support line i've also found, (Thick blue line), this line lands within the 1.272 and 1.414 extension zone, supporting a bullish movement at these levels. I will be looking to definitely buy in these areas.
There has been some very bearish candles the last couple of days demonstrating a accelerated downtrend, and the stochastic RSI still has signs of being in a bearish sentiment, and the downward move on the stochastic RSI has not fully completed and crossed. I think the logical outcome of this is that the move continues downward and eventually hits the 1.272 or 1.414 extension hits on that structural support area and that's when the long opportunities will appear.
I have no doubt a long opportunity isn't too far off, but I don't think we're there just yet.
Good luck traders