NZDUSD is vulnerable to breakdown

NZDUSD is vulnerable to breakdown

Here is NZDUSD market. From first sight, it is clear that the market is moving sideways. It has a balance between buyers and sellers.

How to trade the sideways market? Short from Highs, Buy from Supports.
But P-Ratio indicator (1) gives more advantages. It tells that selling from highs has more chances for success.

The reason – Too many buyers have profits. The market is not interested to make more benefits for them. That is why an idea about rejecting from highs has more weight.

2) An attempt of bulls to breakout. Increase in volume, but the range is narrow, closing is poor. So. time for shorting.
3) If you switch to faster TF, you will find a tiny SLKT at the top of this bar. It could be your trigger for shorting.

What is a Reasonable Target? I like Stop Loss Cluster (4).

 

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