GBPNZD: Forming an expanding terminal wedge
Updated
We have one more push up left before this turns into a massive short in my opinion.
Right now, I had a short running, from a lower timeframe entry but I'll cover and go long at the support level in green, which also matches an 11 bar daily mode.
Look at the momentum indicators, I plotted a derivative oscillator, composite index and RSI with averages to illustrate my point: This is a topping formation, suggesting we sell the next swing up, which will probably form a lower momentum and atr peak before the house of cards comes crashing down.
Risk is 180 pips, but the target lies 809.3 pips up, so I won't hesitate with this setup.
Once we take profits from the long trade, we can initiate a short at the same area, so, leaving a take profit and a reverse position at the same price, using an ATR based stop. Will modify it if need be, for now I'd reccomend focusing on the long.
See the related ideas for more examples on this methodology applied to this pair. Time at mode has been excellent at timing and pricing swing end points before, and I believe it will work again this time.
Cheers,
Ivan.
Right now, I had a short running, from a lower timeframe entry but I'll cover and go long at the support level in green, which also matches an 11 bar daily mode.
Look at the momentum indicators, I plotted a derivative oscillator, composite index and RSI with averages to illustrate my point: This is a topping formation, suggesting we sell the next swing up, which will probably form a lower momentum and atr peak before the house of cards comes crashing down.
Risk is 180 pips, but the target lies 809.3 pips up, so I won't hesitate with this setup.
Once we take profits from the long trade, we can initiate a short at the same area, so, leaving a take profit and a reverse position at the same price, using an ATR based stop. Will modify it if need be, for now I'd reccomend focusing on the long.
See the related ideas for more examples on this methodology applied to this pair. Time at mode has been excellent at timing and pricing swing end points before, and I believe it will work again this time.
Cheers,
Ivan.
Trade closed: target reached
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