Trade Idea on USDZAR + Full Explanation by ThinkingAntsOk
Use this as a guide to develop your own setup, we will explain what we see and what we are waiting for opening our trade on USDZAR
Main items we see on the 4hs chart:
a)The Price found resistance on a Major Supply Zone (check the Weekly chart)
b)The bullish trendline is broken, and currently, the price is on the outside zone of that trendline
c)On MACD we can observe a huge Bearish Divergence
d)Using Wykoff Theory of Cause and Effect we should expect a downward movement at least of the same size of the current range
e)We will wait for a 1h confirmation testing the descending trendline, If that happens we will set our Sell stop order as you can see on the chart
f)Our Stop will be set above the resistance zone and our Take profit will be on the Daily Ascending trendline (check the Weekly Chart)
g)The Risk-Reward Ratio of this trade is 1:2, remember to protect your capital, your maximum amount of money lost in case of a wrong forecast, should be 2% or less.
Weekly Vision:
Main items we see on the 4hs chart:
a)The Price found resistance on a Major Supply Zone (check the Weekly chart)
b)The bullish trendline is broken, and currently, the price is on the outside zone of that trendline
c)On MACD we can observe a huge Bearish Divergence
d)Using Wykoff Theory of Cause and Effect we should expect a downward movement at least of the same size of the current range
e)We will wait for a 1h confirmation testing the descending trendline, If that happens we will set our Sell stop order as you can see on the chart
f)Our Stop will be set above the resistance zone and our Take profit will be on the Daily Ascending trendline (check the Weekly Chart)
g)The Risk-Reward Ratio of this trade is 1:2, remember to protect your capital, your maximum amount of money lost in case of a wrong forecast, should be 2% or less.
Weekly Vision: