The Art of technical analysis is Simple:
1) Take a Clean Chart
2) Look For major Trend in Daily Chart.
3) Zoom into H4 for any counter trend, In case of EURNZD I spotted Post rejection of 61.8% Fib level
4) Eventually Price broke the Counter trend line (here where 90% retail trader starts selling) No Be patient Let the price show you confluences.
5) Price pulls back up and retest its former Support/Resistance, trendline (incase of EURNZD it pulled back up and retested trendline and rejected) Still be patient as we dont have much confluences.
6) Finally I had a 4H bearish engulfing candle close giving 2nd confluence that the bearish major trend of daily chart will prevail. Price just came up to 61.8 Fib level to make a LOWER HIGH (LH)
7) Now after having 3 Confluences (Trendline Break, Trendline Retest & Rejection, Bearish Engulfing) I took a sell @ 1.6911 with Stoploss right above previous 3 candles @ 1.6955
8) Price came down and broke keylevel zone (as from point #6 on chart we see it came back at the top of keyzone and pulls back down with a nice bearish engulfing) Holding Positions Patience!
9) Nice +80 Pips, Here we need to apply exiting strategies (Close your 50% position and book profits) & put stoploss at breakeven) trade is safe now Let it RUN.
EURNZD
1) Take a Clean Chart
2) Look For major Trend in Daily Chart.
3) Zoom into H4 for any counter trend, In case of EURNZD I spotted Post rejection of 61.8% Fib level
4) Eventually Price broke the Counter trend line (here where 90% retail trader starts selling) No Be patient Let the price show you confluences.
5) Price pulls back up and retest its former Support/Resistance, trendline (incase of EURNZD it pulled back up and retested trendline and rejected) Still be patient as we dont have much confluences.
6) Finally I had a 4H bearish engulfing candle close giving 2nd confluence that the bearish major trend of daily chart will prevail. Price just came up to 61.8 Fib level to make a LOWER HIGH (LH)
7) Now after having 3 Confluences (Trendline Break, Trendline Retest & Rejection, Bearish Engulfing) I took a sell @ 1.6911 with Stoploss right above previous 3 candles @ 1.6955
8) Price came down and broke keylevel zone (as from point #6 on chart we see it came back at the top of keyzone and pulls back down with a nice bearish engulfing) Holding Positions Patience!
9) Nice +80 Pips, Here we need to apply exiting strategies (Close your 50% position and book profits) & put stoploss at breakeven) trade is safe now Let it RUN.
EURNZD