This is actually an update to a previous post regarding a bullish bat on NZDUSD H4 (www.tradingview.com/...DUSD-H4-Bullish-Bat/). The condition of a candle breaking and closing above the resistance of the downtrending diagonal channel has been met with a candle close of 0.69222. The long bias of the bullish bat is in confluence with a trend reversal setup with a double bottom (H1) which I will discuss here. The neckline of the double bottom has been broken with the formation of the swing high from the right bottom; price has retraced and was supported at 0.68841 (61.8 Fibonacci retracement from the swing low to swing high). As such, I am placing an aggressive buy limit order at that price. However, my take profit target for this will be 0.70749 which is the TP1 for the bullish bat on H4. Stop loss is tighter which is just below the right bottom instead of point X of the bullish bat. If the bullish bias persists, then TP2 and TP3 may be targeted as well. I will manually cancel the pending order if price goes to TP1 before getting triggered.
Trade Setup: Trend Reversal
Price Entry 0.68841
SL 0.68505 | SL pips 33.6
TP1 0.70749 | TP1 pips 190.8
TP2 0.72131 | TP2 pips 329.0
TP3 0.74370 | TP3 pips 552.9
RRR1 5.68 | RRR2 9.79 | RRR3 16.46
Trade Setup: Trend Reversal
Price Entry 0.68841
SL 0.68505 | SL pips 33.6
TP1 0.70749 | TP1 pips 190.8
TP2 0.72131 | TP2 pips 329.0
TP3 0.74370 | TP3 pips 552.9
RRR1 5.68 | RRR2 9.79 | RRR3 16.46
Comment:
I canceled this pending order as the technical (harmonic pattern) bias does not agree with the fundamental bias due to the unfavorable NZD news release today (Retail Sales q/q: Actual 0.1% | Forecast 1.0% | Previous 1.4%). Will be looking for more quality, high probability trades.
