Based off market structure we can see that nzdjpy needs a pull back it has yet to pull back to at least the 38.2 in a long time.. with price so drastic we can see the pull back starting and already has started making lower lows and highs on the 1 hr chart.
WHILE MARKING THIS UP IM USING THE TOP DOWN ANALYSIS. WAITING FOR THE PULL BACK TO COMPLETE TO ENTER THE LONG..
TRADING THE BOUNCE BACK STRATEGY WE ALSO HAVE OUR CONFIRMATIONS FOR THE SHORT ON THE FOUR HOUR THAT COULD TURN INTO A HUGE PUSH FOR THE SHORT ON THE DAILY
When trading the bounce back strategy we look for divergence in the pairs we are trading. On this specific trade we can see beautiful divergence on the 4 hour chart. Waiting for the pair to play out. When you wait for the true divergence to set up we can typically see an almost instant change in the real candlesticks to the direction that we want.
While trading the bounce back strategy we look for major divergence in the market.. Real candlesticks showing price pushing up while MACD and, other indicators are showing a short.. On the four hour chart we have that beautiful divergence with all of our indicators showing over bought.. potential 160- 185 pip "Pull Back"
