Bearish reversal price action at TL resistance. Entered partial short position. NZDUSD could easily re-test resistance offering better entry R/R. That is the reason I decided to scale in.
The 1W & 1D below determined my bias. 1H and 4H determined entry point. Trade was triggered a couple hours prior to this post and the entry point looks a little different on the charts below than when I opened the position, which supports my decision to scale into this trade. Above .72200 and below .73180 is where I'll look to potentially add to my position. Move above .73180 would invalidate the trade.
1W:
1D:
4H:
1H:
The 1W & 1D below determined my bias. 1H and 4H determined entry point. Trade was triggered a couple hours prior to this post and the entry point looks a little different on the charts below than when I opened the position, which supports my decision to scale into this trade. Above .72200 and below .73180 is where I'll look to potentially add to my position. Move above .73180 would invalidate the trade.
1W:
1D:
4H:
1H:
Trade active
Trade is still active. NZDUSD has been consolidating. I've added to my position at some of the pull backs. I've also had to close a small portion for a loss, which was painful, because at one point I had more risk on the table than my trading plan allowed. I may tighten up my SL a bit which would allow me to add to the position.
Trade active
This chart has the correct entry and SL for my open positions.
Trade active
I tightened up my SL significantly. Couple of reasons. One is the RBNZ Rate decision is in less than 1 hour. Second, and of more significance to me, is the trade seems greatly one sided. Typically I like to be on the other side of extreme one-sided trades. Based on technical data everything indicates go short. BUT I have found 1) when the crowd is extremely one sided 2) the trade is a reversal (meaning opposite of the trend before the current consolidation), and 2) the charts scream "go with the crowd", often the opposite side of the trade wins.
I am still short, however I will be watching this. I probably will move my SL in further and I am currently seeing if I can make a case for going long. I may be happy to sit on the side lines if my SL triggers.
Trade closed: stop reached
SL triggered for a small loss.
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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.