NZD/USD
Certainly! Here are the key points regarding the concept of a "higher low Fib .38 trend line as resistance":
- **Higher Low**: In technical analysis, a "higher low" occurs when the price of an asset pulls back but forms a low that is higher than the previous low. This often indicates increasing buying pressure and potential continuation of an uptrend.
- **Fib .38**: This refers to the Fibonacci retracement level of 38.2%. In Fibonacci analysis, this level is often considered a potential area of support or resistance. When the price retraces, it may find support or encounter resistance near this level.
- **Trend Line as Resistance**: A trend line drawn connecting higher lows acts as a diagonal line of resistance. When the price reaches this trend line after forming a higher low, it may struggle to break above it, indicating resistance to further upward movement.
In summary, the scenario you described suggests that after a pullback, the price forms a higher low, indicating potential bullish momentum. However, when the price approaches the trend line drawn through these higher lows and coincides with the .38 Fibonacci retracement level, it encounters resistance. This may signal a potential reversal or a pause in the uptrend as buyers struggle to push the price above this resistance zone. Traders often watch for confirmation signals before making trading decisions in such scenarios.
- **Higher Low**: In technical analysis, a "higher low" occurs when the price of an asset pulls back but forms a low that is higher than the previous low. This often indicates increasing buying pressure and potential continuation of an uptrend.
- **Fib .38**: This refers to the Fibonacci retracement level of 38.2%. In Fibonacci analysis, this level is often considered a potential area of support or resistance. When the price retraces, it may find support or encounter resistance near this level.
- **Trend Line as Resistance**: A trend line drawn connecting higher lows acts as a diagonal line of resistance. When the price reaches this trend line after forming a higher low, it may struggle to break above it, indicating resistance to further upward movement.
In summary, the scenario you described suggests that after a pullback, the price forms a higher low, indicating potential bullish momentum. However, when the price approaches the trend line drawn through these higher lows and coincides with the .38 Fibonacci retracement level, it encounters resistance. This may signal a potential reversal or a pause in the uptrend as buyers struggle to push the price above this resistance zone. Traders often watch for confirmation signals before making trading decisions in such scenarios.
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.