Kiwi still falling

Morning Dynamic Traders

The Kiwi has dropped a lot today already. I said yesterday that it would have been tricky to have made money from this down turn. Tricky yes, Impossibly no.

I think it is tricky for 2 reasons. First reason is we don’t have any obvious reversal patterns. But there were other signals indicating where the price might be going.

If you look at the RSI it is showing under brought and from Stochastics we have a sell signal.

By using these two indicators along with price hitting a previous resistance/support line at a RN, we would have known a change in direction was coming.















My second reason is where you enter the trade. This is tricky because it depends on what kind of trader you are. If you have a more aggressive approach and don’t mind too much exposure to risk, then entering on this trade might have worked, depending on how you managed your trade with stops.

Tomorrow we will be able to see how much more this has dropped, if it continues and we will see why it has happened, so that we can use the information for our next trades.

Happy Trading