Last day on the kiwi
Afternoon Dynamic Traders, hope you all had a great weekend!
Today I am going to conclude 2 weeks of following the Kiwi.
Last week I was referring to price being squeezed by 2 trend lines, and how we would have to wait for a BOB. The BOB came at the end of last week, but as you can see from today’s candle stick price has fallen back under the trend line (but is yet to close). So what’s happening then?
In the 4 hour chart below you can see that price climbed out of the trend line and failed at a previous S/R line which is also in close proximity to a RN. The change in price was identified by a reversal candlestick.
This was always going to be something to watch for out for, which is why I made the comment on Friday about price having to beat the RN.
Today I am going to conclude 2 weeks of following the Kiwi.
Last week I was referring to price being squeezed by 2 trend lines, and how we would have to wait for a BOB. The BOB came at the end of last week, but as you can see from today’s candle stick price has fallen back under the trend line (but is yet to close). So what’s happening then?
In the 4 hour chart below you can see that price climbed out of the trend line and failed at a previous S/R line which is also in close proximity to a RN. The change in price was identified by a reversal candlestick.
This was always going to be something to watch for out for, which is why I made the comment on Friday about price having to beat the RN.
What will be interesting now is what price will do next. If price continues to drop, will the “up” trend line be strong enough to support price?
If price drops below the trend line, would you enter a trade? If so when?
Hint – if you do decide to enter a short position and providing you have good enough reasons to, my entry would possibly be at a major pivot low!
Remember always carry out your analysis!
Happy Trading
Richard Monnery
Labels: Kiwi
posted by Richard Monnery @ 13:33
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