NZDUSD 4 Hour Chart - What I am Trading This Week
I have analyzed all the 'Major and Major Cross' currency pairs this weekend and I have decided to trade 'NZDUSD' this next week. However, since I will be trading this pair in a counter-trend trade I will be trading on the 4 Hour chart because of the added risk associated with counter-trend trading.
The first thing I see on the 'daily chart' is this currency pair is in a downward trend, however, I also believe this currency pair is ready to go through a period of consolidation. I also notice price action is below the monthly 'average true value'; see the thick blue line labeled 'P' on the chart. This tells me that I should be a seller. I also notice price action has bounced off monthly support at S1 on February 10th and is now moving upward in a counter-trend direction; see the thin blue line labeled 'S1' on the chart.
There are a couple of points here to be aware of:
1. Price action was in a downward trend at the beginning of February and finally found support at monthly support on February 10th. Usually what happens in situations like this is price action will bounce off monthly support and move back to 'average true value' in a counter-trend direction. (Same idea as to when price moves too far away from a moving average it will then return to the moving average). Following a re-test of 'average true value' price action should then reverse back down and move below S1 to the second 'support level' at S2 (not shown on chart).
2. If price action breaks out above 'average true value' it could be an indication the main trend is reversing upward.
Next, I will discuss what I see happening this next week:
The first thing I did here was to add this next week's weekly 'average true value price level, the weekly support line, and the weekly resistance lines in green with the 'average true value' price level drawn in a thick green line.
Next, I see the last 4-hour candle was a 'Doji' indicating indecision. Note: Black triangles identify 'Doji candlesticks'. I am now looking for the next 4-hour candle to close above the high of the 'Doji'. If the 4-hour candle closes above the high of the 'Doji' I will be entering a Long trade.
The first thing I see on the 'daily chart' is this currency pair is in a downward trend, however, I also believe this currency pair is ready to go through a period of consolidation. I also notice price action is below the monthly 'average true value'; see the thick blue line labeled 'P' on the chart. This tells me that I should be a seller. I also notice price action has bounced off monthly support at S1 on February 10th and is now moving upward in a counter-trend direction; see the thin blue line labeled 'S1' on the chart.
There are a couple of points here to be aware of:
1. Price action was in a downward trend at the beginning of February and finally found support at monthly support on February 10th. Usually what happens in situations like this is price action will bounce off monthly support and move back to 'average true value' in a counter-trend direction. (Same idea as to when price moves too far away from a moving average it will then return to the moving average). Following a re-test of 'average true value' price action should then reverse back down and move below S1 to the second 'support level' at S2 (not shown on chart).
2. If price action breaks out above 'average true value' it could be an indication the main trend is reversing upward.
Next, I will discuss what I see happening this next week:
The first thing I did here was to add this next week's weekly 'average true value price level, the weekly support line, and the weekly resistance lines in green with the 'average true value' price level drawn in a thick green line.
Next, I see the last 4-hour candle was a 'Doji' indicating indecision. Note: Black triangles identify 'Doji candlesticks'. I am now looking for the next 4-hour candle to close above the high of the 'Doji'. If the 4-hour candle closes above the high of the 'Doji' I will be entering a Long trade.
Order cancelled:
www.tradingview.com/chart/dFl2yqwy/
Trade setup did not trigger a Long Entry; trade setup canceled. I am now waiting for price action to reach the support line; see the thin green line. Once price reaches support I will then look for a new Long Trade setup.
Trade setup did not trigger a Long Entry; trade setup canceled. I am now waiting for price action to reach the support line; see the thin green line. Once price reaches support I will then look for a new Long Trade setup.