Here is a possible textbook example of a triangle breakout trade. To be safe, always wait for a retest of the former support and then start adding positions. Remember to always put patience first and profits will surely follow. I have marked in the chart an invalidation area of this setup. Kudos!
I am not in the trade just monitoring it. Just an idea, not a signal.
NZDJPY - D - Long Truncated Fifth, should follow an A -> B
NZDJPY looks like it may correct long on the daily chart, but be weary of any continued strength. NZD pairs are weak. JPY pairs are corrective. Looking for corrective strength and more downside.
As I dive deeper into EW theory my analysis and way of looking at charts has changed. Here's an update to nzdjpy outlook. I'm long and strong! :D
On the hourly chart price is approaching upper end of the channel. - Possible short entry if price bounces off upper trend line - Possible long position if price breaks the channel - may be smart to wait for price to retrace back to upper trend line of channel which could now act as support to enter long position
With the current sell off of the Kiwi, we are approaching an area where there could be a reversal. This ties in with the the EURNZD and AUDNZD pairs that also show an area of possible reversal. Price may rebound between the areas marked out by yellow boxes. The sharp drops from the yellow boxes above (supply zones) tell us the pair could rebound upon returning...
This shows that were a lot of unfilled sell orders in the market at that price range. This is true because prices wouldn't have fallen so quickly if this wasn't the case. Prices would continue to trade sideways. But they didn't, suggesting a seller biased imbalance. The downside to this zone is the amount of activity preceding the zone. But the reward of such...
This drop was amidst the RBNZ Interest rate revelation. This shows that were a lot of unfilled sell orders in the market at that price range. This is true because prices wouldn't have fallen so quickly if this wasn't the case. Prices would trade sideways. But they didn't, suggesting a seller biased inbalance. The downside to this zone is the amount of activity...
The zone is a 5-pip zone allowing you to get a return of about 15 pips. The strong push away from the area means there should be a turn lower in price the next time. This is again an income trade. This trade is far away from current price And could take a while. It is best to watch how price reacts in the coming days. EP: ~86.53 SL: ~86.58 TP: >86.38 (about...
Two fresh supply levels sit on top of each other. The first one is a 4-pip zone allowing you to get a return of about 15 pips. The strong push away from the area means there should be a turn lower in price the next time. This is again an income trade. EP: ~86.380 SL: ~86.420 TP: >86.230 (about 15 pips, ~4:1 return)
Two fresh supply levels sit on top of each other. The first one is a 4-pip zone allowing you to get a return of about 12 pips. The strong push away from the area means there should be a turn lower in price the next time. This is again an income trade. EP: ~86.330 SL: ~86.370 TP: >86.210 (about 12 pips, 3:1 return)
Despite the strong move away from this price area, a lot of price action has occurred in the area. Therefore, a 2:1 return is probably best. This is no more than income trade (to pay the bills). EP: ~86.070 SL: ~86.000 TP: >86.220 If you trade multiple positions, close some at 86.220 and let the rest run to ~86.320.