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  1. #1
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    Default Shorting aud/nzd at the top of the range

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    As the last night's New Zealand CPI release came in worse than expected price shot up and my sell orders did not get triggered. But now when the exchange rate has met the resistance around 1.0900 we can see bearish engulfing candlestick on 4H chart thus giving us an even better entry point for going short.

    We can also a see bearish divergence on stochastic indicator in both - 4H and Daily chart.

    I am shorting at the market at 1.0863 with a stop above the range at 1.1000 and target the range's support at 1.0550


  2. #2
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    FOREXunlimited is offline Junior Member
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    Quote Originally Posted by TradeItSimple View Post
    Name:  Audnzd4H.jpg
Views: 102
Size:  42.6 KB

    As the last night's New Zealand CPI release came in worse than expected price shot up and my sell orders did not get triggered. But now when the exchange rate has met the resistance around 1.0900 we can see bearish engulfing candlestick on 4H chart thus giving us an even better entry point for going short.

    We can also a see bearish divergence on stochastic indicator in both - 4H and Daily chart.

    I am shorting at the market at 1.0863 with a stop above the range at 1.1000 and target the range's support at 1.0550
    Hey there,

    What settings do you have your STOCH tuned in to?
    That's a hefty limit target you set - what's your timeframe on achieving your profit?

    The D1 is not showing a clear divergence signal - it's actually the opposite. The momentum indicator is embedded to the topside, which can be representative of further bullish gains.

    Market volatility isn't what it used to be across the board.
    This pair's current D1 ATR is just under 70 points.

    Since JAN 2013, the pair has ranged between 100 - 60 on the D1 ATR indicator..your profit target is 10x the H4 ATR right now which is @ 32p...

    Do you normally set targets such as this with accuracy?
    Also, what type of leverage are you employing?

    Not trying to attack here, just supplying my opinions on your analysis.

    Looking forward to response,
    Jake

  3. #3
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    I use standard 5, 3, 3 settings for my Stoch

    I expect this trade to play out over a course of 3-4 weeks.

    As RBNZ is continously warning about interest rate hikes I see this range as a consolidation before the exchange rate breaks even lower.

    This year I've had only 1 trade of such term. It was the the recent up move in gold from 1,200 to 1,350 and that one played out beautifully

    I use 1:20 leverage.

    The main reason I started blogging about forex was exactly this - I need other people to express their opinion about my analysis, it very oftenly helps to improve it, so thank you for your imput.

    Kindest regards,
    Martin
    Last edited by TradeItSimple; 04-16-2014 at 03:07 PM.

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