NZDCAD Ascending Channel Counter-Trend Strategy
STRATEGY: NZDCAD Ascending Channel Counter-Trend Strategy
DETAILS
Long Term Trend Time Frame: 1D/4H
Focus Time Frame: 4H
Entry Time Frame: 1H
Market Condition
Long Term: Downtrend (based on 1D TF/200EMA)
Short Term: Uptrend/Consolidation (based ion 1D TF/10EMA and 50EMA) inside Ascending Channel
CHART PATTERN: Ascending Channel
Area of Value (AOV)
RESISTANCE
Dynamic:
SUPPORT:
Static:
Minor: 0.83774 - 0.83683
Major: 0.83385 - 0.83158
Dynamic:
- 10EMA: 0.84220
- 50EMA: 0.84146
ENTRY TRIGGER(s):
1H: Bearish Engulfing
4H: NA
1D: High Momentum Candlestick going to Resistance
Entry Price (EP): 0.84759
Stop Loss (SL): 0.84953
Take Profit (TP): 0.84059
RRR: 4.02
ANALYSIS
1D - Overall trend is showing downtrend based on 1D TF - 200EMA. Heikin Ashi is still uptrend but the price is currently struggling to break above resistance level of 0.85201 - 0.85075. It is also supported by 83EMA and 100EMA which act as Dynamic Resistance.
https://www.tradingview.com/x/ogQjS3e9/
tradingview.com/x/ogQjS3e9/]https://www.tradingview.com/x/ogQjS3e9/
4H - Looking at the 4H TF, we can see that Price is moving on an Ascending Channel. Short term trend showing uptrend which is supported by Heikin Ashi. However, as stated before, the price is currently struggling to break above Static and Dynamic Resistance on a higher Timeframe (1D). We will give more weight on a higher timeframe as Smart Money focuses on this time frame.
https://www.tradingview.com/x/zAkYy7Ms/
https://www.tradingview.com/x/taaa993g/
tradingview.com/x/zAkYy7Ms/]https://www.tradingview.com/x/zAkYy7Ms/
tradingview.com/x/taaa993g/]https://www.tradingview.com/x/taaa993g/
1H - Our Entry Triggers are always on 1H TF. Here we see that there's a Bearish Engulfing Price Action happened on the Static Resistance AOV. This acts as our Entry Trigger.
https://www.tradingview.com/x/QoCqnbhg/
https://www.tradingview.com/x/k31xAPki/
tradingview.com/x/QoCqnbhg/]https://www.tradingview.com/x/QoCqnbhg/
tradingview.com/x/k31xAPki/]https://www.tradingview.com/x/k31xAPki/
OTHER ENTRY REASON(s):
High Momentum price action approaching resistance usually reverses as it has no higher highs to support its move.
ACTION ITEMS:
1. Exit/TP on Higher Timeframes: 4H or 1D
2. Scale in on Entry Timeframe (1H).
IMPORTANT:
Always move the SL on Breakeven after significant move.
Scale in as necessary and move the TP of the initial entry to the SL of new entry. This way, we will be able to Minimize risk and Maximize potential Profit.
NOTE: This post is for my reference/journal purposes only. Trade at your own risk.
DETAILS
Long Term Trend Time Frame: 1D/4H
Focus Time Frame: 4H
Entry Time Frame: 1H
Market Condition
Long Term: Downtrend (based on 1D TF/200EMA)
Short Term: Uptrend/Consolidation (based ion 1D TF/10EMA and 50EMA) inside Ascending Channel
CHART PATTERN: Ascending Channel
Area of Value (AOV)
RESISTANCE
- Static: 0.85201 - 0.85075
Dynamic:
- 83EMA: 0.84701
- 100EMA: 0.85002
SUPPORT:
Static:
Minor: 0.83774 - 0.83683
Major: 0.83385 - 0.83158
Dynamic:
- 10EMA: 0.84220
- 50EMA: 0.84146
ENTRY TRIGGER(s):
1H: Bearish Engulfing
4H: NA
1D: High Momentum Candlestick going to Resistance
Entry Price (EP): 0.84759
Stop Loss (SL): 0.84953
Take Profit (TP): 0.84059
RRR: 4.02
ANALYSIS
1D - Overall trend is showing downtrend based on 1D TF - 200EMA. Heikin Ashi is still uptrend but the price is currently struggling to break above resistance level of 0.85201 - 0.85075. It is also supported by 83EMA and 100EMA which act as Dynamic Resistance.
https://www.tradingview.com/x/ogQjS3e9/
tradingview.com/x/ogQjS3e9/]https://www.tradingview.com/x/ogQjS3e9/
4H - Looking at the 4H TF, we can see that Price is moving on an Ascending Channel. Short term trend showing uptrend which is supported by Heikin Ashi. However, as stated before, the price is currently struggling to break above Static and Dynamic Resistance on a higher Timeframe (1D). We will give more weight on a higher timeframe as Smart Money focuses on this time frame.
https://www.tradingview.com/x/zAkYy7Ms/
https://www.tradingview.com/x/taaa993g/
tradingview.com/x/zAkYy7Ms/]https://www.tradingview.com/x/zAkYy7Ms/
tradingview.com/x/taaa993g/]https://www.tradingview.com/x/taaa993g/
1H - Our Entry Triggers are always on 1H TF. Here we see that there's a Bearish Engulfing Price Action happened on the Static Resistance AOV. This acts as our Entry Trigger.
https://www.tradingview.com/x/QoCqnbhg/
https://www.tradingview.com/x/k31xAPki/
tradingview.com/x/QoCqnbhg/]https://www.tradingview.com/x/QoCqnbhg/
tradingview.com/x/k31xAPki/]https://www.tradingview.com/x/k31xAPki/
OTHER ENTRY REASON(s):
High Momentum price action approaching resistance usually reverses as it has no higher highs to support its move.
ACTION ITEMS:
1. Exit/TP on Higher Timeframes: 4H or 1D
2. Scale in on Entry Timeframe (1H).
IMPORTANT:
Always move the SL on Breakeven after significant move.
Scale in as necessary and move the TP of the initial entry to the SL of new entry. This way, we will be able to Minimize risk and Maximize potential Profit.
NOTE: This post is for my reference/journal purposes only. Trade at your own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.