USDZAR Descending channel. Price tests resistance
Updated
Not so long ago I posted an idea based on this pair and a lot has happened since then.
Here we can clearly see that the descending channel has fully formed and the 6 touches on our channel's support and resistance lines respectively, further confirm the trend. The main question is: will the trend continue or are we in for a breakout above? Well, I personally hope that this channel resistance will hold.
Entering a trade on the third touch of a trendline for confirmation is a good concept to employ. The idea behind this three touch approach is that if you just connect two points on a chart, well, any two random points can be connected with a straight line and they may or may not be meaningful relative to the trade. However, if three points on a chart can be connected with a straight line, now we have something that can be used in our trading analysis.
Good luck and
Here we can clearly see that the descending channel has fully formed and the 6 touches on our channel's support and resistance lines respectively, further confirm the trend. The main question is: will the trend continue or are we in for a breakout above? Well, I personally hope that this channel resistance will hold.
Entering a trade on the third touch of a trendline for confirmation is a good concept to employ. The idea behind this three touch approach is that if you just connect two points on a chart, well, any two random points can be connected with a straight line and they may or may not be meaningful relative to the trade. However, if three points on a chart can be connected with a straight line, now we have something that can be used in our trading analysis.
Good luck and
Trade active
I can see a potential Head & Shoulders pattern and if it persists, we might have to close our trade and re-enter into a long position. But since the price closed below our channel resistance and below our area of interest, we might still be safe for now.
I will post an update on this trade shortly.
Note
More than anything, I would appreciate it if you guys could comment on my ideas. I'm not after 'likes' or anything like that, but comments and constructive criticism would be greatly appreciated.
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