NZDUSD-A wonderful rare setup but nothing is perfect in trading
A few day ago i posted a long term EW analysis expecting a rebound in the 0.6409 and 0.6495 area
Apart from EW i found a very powerful rare confluence of others indicators/trading systems
We have a bollinger duplication on monthly chart on a key level 0.65000
On weekly chart we see another bollinger band duplication and stochastics historical oversold
Here on D1 chart we see:
- harmonics AB=CD pattern
- RSI extremely oversold with bullish divergence
- four lows in a row (the maximun level of divergence)
- more than 20 candles ride on bollinger bands, when this happens prices tends to meet the middle or opposite bollinger band
- strong psycholevel 0.6500
A very rare and reliable confluence but nothing is perfect in trading. We have RBNZ rate news on WEDNESDAY, so its not a good time to enter a trade.
But on the other hand i do not want to miss a strong rebound at this level. I saw the same setup before and i would rely on the price action instead of fundamentals.
Im already short on AUDNZD, so i will open a long(s) position(s) with less risk (0.5%). Im not playing the lottery here because i have tested this setup succesfuly many times before. Of cours nothing is 100% sure in trading.
Best regards.
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome.
We all are here to learn sharing ideas, have fun and improve our performance.
Apart from EW i found a very powerful rare confluence of others indicators/trading systems
We have a bollinger duplication on monthly chart on a key level 0.65000
On weekly chart we see another bollinger band duplication and stochastics historical oversold
Here on D1 chart we see:
- harmonics AB=CD pattern
- RSI extremely oversold with bullish divergence
- four lows in a row (the maximun level of divergence)
- more than 20 candles ride on bollinger bands, when this happens prices tends to meet the middle or opposite bollinger band
- strong psycholevel 0.6500
A very rare and reliable confluence but nothing is perfect in trading. We have RBNZ rate news on WEDNESDAY, so its not a good time to enter a trade.
But on the other hand i do not want to miss a strong rebound at this level. I saw the same setup before and i would rely on the price action instead of fundamentals.
Im already short on AUDNZD, so i will open a long(s) position(s) with less risk (0.5%). Im not playing the lottery here because i have tested this setup succesfuly many times before. Of cours nothing is 100% sure in trading.
Best regards.
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome.
We all are here to learn sharing ideas, have fun and improve our performance.