NZD/JPY Long Idea.
- Firstly there is a symmetrical triangle formation beginning to form
- Secondly the purple shaded area is a significant monthly support as well as being a previously strong resistance zone
- To look for a price to take profit the 0.5 Fib level (69.862) is a very realistic area to target
However if there are signs of continuing momentum...
The two areas I have circled in red show two similar scenarios:
1. a previous area of resistance
2. two candles showing long wicks a sign of exhaustion from the bulls and a potential signal of reversal to the downside
The two pink horizontal lines show my target profit zones.
Before entering my trade I will be waiting for extra confirmation from the 6H...
- Firstly we can see that there have
been 3 tests along the support line I have drawn.
- Using the Ichimoku we can see that the conversion and baseline have begun to crossover signalling a potential new trend reversal. Additionally, we have a green bullish candle pushing out above the cloud which meets the rules for a long position.
- However, I would wait for...