NZDUSD. Ready to risk?Oleg Alexandrov
Here is a weekly chart. NZDUSD has been trending down for many days.
Wave channels are pointing downwards, speed of decline is accelerating. In the described obstacles, an idea of entering into the long position sounds risky. However, if the analysis of the chart gives you enough facts, your position could be justified.
Let’s get facts.
1] Here is a wave line. It is not obvious, but it was able to reverse the price several times. Well, may it act as the support now? Especially, when we have the SLKB (red line).
Go now into the Order Book.
3] OMG! A lot of Stop-Losses and Buy-Limits. This is a powerful 0.63 round number.
4] Market is oversold as Ratios are fluctuating in the extreme zone.
So, taking into consideration described facts, buying sounds is not as risky as from first sight. The plan could be as follows:
-> wait for breaking down 0.63
-> fast strong recovery above 0.63 will give you a suggestion that this market is not interested in moving further.
Yes, You Can Become a Professional Chart Reader
To build success in any business, you should rely on things that really work.
In Chart Reading Method, they are three: The Law of Inequality, The Law of Supply & Demand, The Law of Effort & Result.
Download free books, to understand how can you apply the Laws and convert charts into profitable setups daily!
Enter your email to Download books
No spam is guaranteed.