NZD/CAD short from 0. 8767
Updated
This trade idea is based mostly on a Trend setup. There is a strong downtrend on the NZD/CAD right now. In such case, I look for volume clusters that were created within the downtrend. Such a volume cluster as around 0.8767 shows us that sellers were adding to their selling positions there and that they continued pushing the price lower from this area. When the price makes it back to this area again (pullback), then those sellers are likely to defend their positions and push the price lower.
Another confirmation of this level is as Support becoming resistance Price Action setup. Quite near our short level, there was a pretty strong rejection of this level in the past – marked in blue. This indicates that it was a strong support in the past. When the price went through this support then it became a resistance.
There is one more thing about this level which I like – it is the pinbar candlestick (I marked it in the red rectangle). This pinbar shows us aggressivity of sellers, which again confirms the idea of a short trade from 0.8767.
Another confirmation of this level is as Support becoming resistance Price Action setup. Quite near our short level, there was a pretty strong rejection of this level in the past – marked in blue. This indicates that it was a strong support in the past. When the price went through this support then it became a resistance.
There is one more thing about this level which I like – it is the pinbar candlestick (I marked it in the red rectangle). This pinbar shows us aggressivity of sellers, which again confirms the idea of a short trade from 0.8767.
Order cancelled
Level was tested a few pips before...
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