NZDCAD trend continuation opportunity on daily chart
Updated
Watching the big picture, we are still on an uptrend on the weekly and daily time frame which makes me look for trend continuation opportunities. Currently price is at a very sweet spot while RSI approaching oversold levels. Great risk:reward if entered at market if conservative stops and targets are used as illustrated on the opened long position in the chart.
Trade active
Trade closed: stop reached
Trade recap: After the trade got filled around a month ago we pulled back up but banged off the weekly resistance level at 0.96 and then ranged in 0.94ish prices for the remainder of the days. Even though this was a losing trade, it was still a good trade because it had a great R/R and there is nothing I would have improved in this trade. I could have moved SL to breakeven when price went to 0.96 but price did neither move far away enough from entry nor provide another good reason to move SL. Since this was a trend continuation trade I wanted to have breathing room at least until the previous support level that upheld the uptrend. SL was also triggered for a good reason at least because we have a daily close and even weekly close below previous structure which signals a bearish rotation is in place, so no more reason to be in an uptrend trade. I suppose on the daily chart we will now move to a period of consolidation or even start a downtrend but for that we need some retracement up and then make a new fresh low.
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