Here we have the kiwi on support while we have a divergence on the RSI. Could be a nice opportunity for entering in the direction of the main trend witch is long
Comments
blackdog
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Hello dojitrader, if you have a look at the monthly , weekly and daily chart you will see that the up trend is live and kicking, the 4h is use only for the entry.
In terms of when to enter that is totally up to each traders discretion. Also if you wait for the for the continuation bar you will have a higher probability but will be risking more pips to the SL. There is no must in trading. What I have learned all these years trading professionally for big institutions is that out of 500 traders on the floor.....everyone has a brain of there own.....and everyone has there own style and experience. So for some people it is a screaming long and for others it needs more or is even a short, it is all what each trader can see. No one is wrong or right....the P/L tells the full story. Thank you for your response and your side of the analysis and wish you lots of pips in 2014!
dojitrader
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Looking for your thoughts on my questions please . . .
I assume you are thinking inverse divergence - where rsi made anew low but price did not ?
If you draw a trend line from the lows near the first of the year you can see that
structure has clearly been broken, tested 3 times @ .8350 or so, and there is now
a series of lower lows And lower highs indicating a change of trend to the downside. ?
The candlestick pattern could be interpreted as one of exhaustion, but, there would
have to be some kind of bullish candle before you could call this a long entry.
If this is an A-B-C correction then A = C around .8100 so I'm having difficulty
seeing this as a bullish set up.
Thanks for your thoughts and many pips to you in 2014 !!!!
blackdog
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And then again.....I could be totally wrong.....I am not 100% right.....I wish I was :-) Let's see......
In terms of when to enter that is totally up to each traders discretion. Also if you wait for the for the continuation bar you will have a higher probability but will be risking more pips to the SL. There is no must in trading. What I have learned all these years trading professionally for big institutions is that out of 500 traders on the floor.....everyone has a brain of there own.....and everyone has there own style and experience. So for some people it is a screaming long and for others it needs more or is even a short, it is all what each trader can see. No one is wrong or right....the P/L tells the full story. Thank you for your response and your side of the analysis and wish you lots of pips in 2014!