Hello traders. On this 4H analysis of NZDUSD we have a double top setup. We can see that the price was rejected twice from the 0.72150 region, creating our first and second top. Also, the neckline was formed in the 0.71370 region. An entry reason for this trade would be the strong rejection observed on the 1TF from the neckline in the 0.71370 region. The 0.70130 region is seen as a good support level where price may go next. Since this is a rather conservative entry reason, a SL should be placed somewhere above the 0.71370 region, although for me this setup really doesn't invalidates until the double top is broken before reaching the projected target.
Comment:
Unfortunately price did not fall to our support level before heading higher but as mentioned, this setup does not invalidate for me until price breaks the resistance level of our double top. If price is rejected again from this level with a valid entry reason and you wish to enter this trade, a SL should appropriately placed above this zone while the projected target would remain.
Trade closed: target reached:
Awesome!