Possible Long NZDCAD??
Feel free to like or comment. Especially if you see something different or think otherwise state your reason(s). I am open to seeing others point of view.
1.) Here price found support and formed a double bottom pattern, which is a bullish formation and started off the uptrend. This also serves as the low.
2.) After the double bottom was formed, price confirmed it by retesting/respecting the neckline. This ultimately created a Higher Low.
3.) Price broke out of the monthly support as expected and begin to form higher highs and higher lows. This higher low formed a double bottom.
4.) After double bottom was formed, price continued up and created a higher high. Price then retested/respected this neckline and continued up.
This area also served as a daily support, which will eventually form a daily resistance.
5.) Once price found support at the daily resistance price formed another higher high. After this high price retraced and ultimately broke below the prior low. This is known as a break of structure "BOS." When this occurs except a retrace to test this level and price possibly dropping lower. This break of structure also correlates with the daily support level which is now resistance. Also when a BOS occurs, normally look for a retrace to at least the 50.0 level. After drawing the fib from the high to the new low, the 50.0 fib level ALSO correlates with the daily support/resistance and the prior low.
After price broke structure it found support at the monthly/weekly support level. Formed a double bottom, which also can serve as a bullish reversal pattern. Price is currently at the neckline of this double bottom, but the previous daily closed in a large bearish candle. Since price is still respecting this monthly/weekly structure. I will just wait and standby for price to show bullish candlestick and enter a buy.
6.) If you switch over to a higher time frame like the MONTHLY, maybe the weekly, you will notice that price formed a double bottom. Where price is currently is testing this area (the red broken up line illustrates the neckline of the double bottom).
1.) Here price found support and formed a double bottom pattern, which is a bullish formation and started off the uptrend. This also serves as the low.
2.) After the double bottom was formed, price confirmed it by retesting/respecting the neckline. This ultimately created a Higher Low.
3.) Price broke out of the monthly support as expected and begin to form higher highs and higher lows. This higher low formed a double bottom.
4.) After double bottom was formed, price continued up and created a higher high. Price then retested/respected this neckline and continued up.
This area also served as a daily support, which will eventually form a daily resistance.
5.) Once price found support at the daily resistance price formed another higher high. After this high price retraced and ultimately broke below the prior low. This is known as a break of structure "BOS." When this occurs except a retrace to test this level and price possibly dropping lower. This break of structure also correlates with the daily support level which is now resistance. Also when a BOS occurs, normally look for a retrace to at least the 50.0 level. After drawing the fib from the high to the new low, the 50.0 fib level ALSO correlates with the daily support/resistance and the prior low.
After price broke structure it found support at the monthly/weekly support level. Formed a double bottom, which also can serve as a bullish reversal pattern. Price is currently at the neckline of this double bottom, but the previous daily closed in a large bearish candle. Since price is still respecting this monthly/weekly structure. I will just wait and standby for price to show bullish candlestick and enter a buy.
6.) If you switch over to a higher time frame like the MONTHLY, maybe the weekly, you will notice that price formed a double bottom. Where price is currently is testing this area (the red broken up line illustrates the neckline of the double bottom).
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