new zealand dollar price action update
Little update on downtrend resumption as I was eager for that trade and emphasis a lot on this setup for the past two days. Take a look at the chart and decide what one could have done wrong when someone is aware of "distribution". Take a look at the update chart below !
scalp opportunity of kiwi dollar as imbalance disappears in strong trend
As I mentioned in my previous post about imbalance and difference between short term scalps and swing trading offer lot of opportunities as mentioned in Post. Check it my last post Here !!
Short term momentum does give us lot of opportunity as we are told from start that we should trade what we see. Here I go short with the trading range as price action in ranges are quite repitative and when we dont find enough buyers in short term picture then price keep looking to strong demand areas to find how crowd reacts there.
Here is I have mentioned that longs were trap with strong range breakouts with bullish engulfing and price test the area and immediate covering was found and lot of downside momentum as well.
Here is the another classic example of buyers finally give away in range-bound trading and price finally repeat the price action again and range breakouts again to the upside and then again after find strong short term buyers sellers again step in and move the price to the downside again to the support 0.9340
Check it here!!
When suppliers can't move the price immediately specially because of strong uptrend then they will liquidate their position with strong bullish engulfing bar to sell from better price and Australian dollar move today was a perfect example of today, although second trap was much more valid as first was overlapped but idea was too sell with a strong bulk orders.
Take a look at the chart below !!
Momentum give you another entry to enter again as I mentioned in my previous post that we need to cover but next candle break above that faded out candle.
Take a look at the chart I posted first on the blog, Here I mentioned that price has spend 90% of the range to the upside, yesterday and when it happens and market is moving down slowly and certainly it find strong momentum from the previous day "Minor development Area", then we get a good high risk reward oppotunity to enter on momentum as I did here and I had to cover with only 12 pips.
Take a look at the chart !
As I have mentioned in my previous chart we should cover over position with strong momentum candle which was faded out and another bar could let you enter again as there are best chances of momentum to carry throughout the day as it did.
Take a look at the chart Below !!
