NZDCAD is setting up to be an Uncharted trade. First of all, we have had a nice uptrend with clear higher lows and higher highs. We then hit a major resistance/flip zone at 0.8950. We are seeing some rejection so far, but I am awaiting a proper pattern.
It seems like we can make a head and shoulders like pattern here, once again it is a trend exhaustion and reversal pattern, that is it. It shows the transition from higher lows to lower highs.
Fake outs are one of my more advanced strategies because candles need to be read in CONTEXT. In this case, we want to see them shwoing up near the end of a trend. More importantly, it is the FOLLOWING candle after the wick candle which gives us an entry trigger. Wicks must be used as a 2 candle pattern rather than a single candle pattern which is often the case with new traders.
I have added a position here, and am looking to add further with a confirmed break and close below the 0.8860 zone. That is really the trigger here, but I do like the wick candles being followed by major red bodied candles.
First target will be the 0.87 zone.
It seems like we can make a head and shoulders like pattern here, once again it is a trend exhaustion and reversal pattern, that is it. It shows the transition from higher lows to lower highs.
Fake outs are one of my more advanced strategies because candles need to be read in CONTEXT. In this case, we want to see them shwoing up near the end of a trend. More importantly, it is the FOLLOWING candle after the wick candle which gives us an entry trigger. Wicks must be used as a 2 candle pattern rather than a single candle pattern which is often the case with new traders.
I have added a position here, and am looking to add further with a confirmed break and close below the 0.8860 zone. That is really the trigger here, but I do like the wick candles being followed by major red bodied candles.
First target will be the 0.87 zone.