Bearish bat in the making

FX:NZDUSD   New Zealand Dollar / U.S. Dollar
378 12 4
This is a follow up for my two previous NZDUSD             ideas:

We moved lower as expected then got a strong reaction at
the .84 figure, which could be seen as an impulse, but wave 2
and wave x (in complex corrections) are always very strong
because the market has not made up its mind.

In other words, this could very well be a corrective move.
A new high towards .874 and the a break below .8550 would
give us some conformation that we are going below .84

The alt. view (chart below) would be that the move from
may high was a complex correction. A break above .8780
would put the alt. view in play.

Follow all my demo trades at
and follow me on twitter for intra-day updates

Good luck!
Well, for what it's worth, I managed a few pips when .8680 was broken and then the retest failed
and blasted off to the upside. Looks like the alternate 3rd wave is in play headed for a 5th.
So, do you suppose we've had a 4th wave flat followed by a 4th wave expanded flat ?
I might try to buy the iv th wave and sell the v th depending on how it plays out and,
of course, some help from the candlesticks. Hope you made a few pips also !
+1 Reply
traderWgun dojitrader
agree, looking more and more like a flat wave 4.
Thankful there are alerts today !
I had almost forgotten about this trade as my entry was @ .8736
and price had come so close but not traded through.
Anyway, since we did hit another high I'm thinking wave 4 was a flat
that ended on 6/17 about .8642, but, not sure what to think of price action
since - until we break below .8680
What say you ???
Thanks for your thoughts !!!!!
traderWgun dojitrader
I think so too
looks like we are in wave 4 triangle
We've been thinking alike ____ I must be getting better !
Was looking at this count yesterday, but, resisted publishing until I looked at the
daily and weekly to try and determine a clue for the strength of the C wave or wave 3
and determine stops since price is so close to the previous top @ .8841 August 2011
wondering if it will become a target. Not sure I have an answer except that risk is well
defined. Guess I'll fall back on the possible help from the candlesticks as I so always do.
Profits to us both !!!!!!
+1 Reply
traderWgun dojitrader
Yes the risk is very limited which is very important when the trend is so strong. The best of luck to you to man!