NZDCAD Head & Shoulders Forecast Playing OutWe forecasted this NZDCAD head and shoulders last week.
Our position is now running at over 4.15% with over 2.5% locked in with our stop loss. Now risk free with guaranteed profit.
With experience analysing and trading in the live markets we were able to forecast the right shoulder far before it was confirmed, due to the nature that price was rejected the previous highs of the left shoulder.
This was a very high probability trade due to all the confluence factors in line with eachother;
1.Multiple rejections of strong resistance level (red line above price)
2. Rising wedge break and retest
3. Head and Shoulders pattern
4.Right shoulder failing over and over to break the highs of the left shoulder
5. Bearish engulfing on the 1H time frame
6.Strong bearish momentum on the 4H time frame.
This was our entry point, with a stop loss above the right shoulder highs, and a target at the bottom of the range, but trailing our stop loss according to our BlueFire Strategy as price develops safe levels.
We were able to enter at the break of a minor 1H resistance at the top of the right shoulder, which is a part of our strategy.
