NZDCAD: SIMPLE PRICE ACTION BASED TRADE SETUP ON DAILY !!!Hello Trader,
This short trade setup on FX:NZDCAD is simply based on current price action and the key levels that are labelled on the chart above. As we can see that after every consolidation periods (yellow lines) we got breakouts in the form of strong impulse moves (blue arrows). After being in a strong impulse move for the past 4 weeks, the buyers seems to be running out of steam. Keep the 0.90000 key psychological round number in mind, most likely to act as strong resistance level. See the chart above for more detail.
Below is the list of valid reasons for placing short pending orders:
1.) Bearish Pin Bar formation right at key psychological round number of 0.89000
2.) Bearish Pin Bar formed exactly at 200 day moving average, which is now currently acting as strong resistance
3.) Strong RSI Bearish Divergence
4.) From historical perspective, market retraced most of the time AFTER strong impulse moves
ENTRY: 50% of the Bearish Pin Bar's wick
TARGETS: 1st @ 0.88049; 2nd @ 0.87139; 3rd @ 0.85152
STOPS: 20 pips above the Bearish Pin Bar's high
NOTE #1: Each target is based on key structure levels (previous swing highs or previous swing lows)
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
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