update of the eur/nzd chart My last week trade

Here is update of trade Eur/Nzd chart with Explanation

As You can see in the chart pair breakout from a level and real maintained a level above after building strong reference points, on neutral days and when value shifts in such case,the breakout was false and it was another bearish engulfing trap, that ends with some congestion candles.

When You have such scenarios then you always look with the first attempt out of that failure with strong rise from the false breakout level and that is the good part with very low risk and possible very good reward and In the end I have to cover with some strong rally to the downside, And If you watch the chart carefully when value shifts and price and when it test the area then most of time that area is protected and that is also the low or recent rally

Stay tuned for more updates !

Another Example of Mature trend Relationship with Candlesticks

We have a live trade going on which I would like to see how demand area behaves when trend is mature enough and look to reverse.

Role of strong Momentum Candles

or Elongated Candles

When we looking for a trend to reverse We Use following points as checklist :-

A. Liquidation ( How price has behave when sell-off taken place)

B. Recovery (Whether the attempt to recover was successful)

C. Momentum Candles (How price behave at strong momentum or initiative Breaks)

D. Candlesticks Traps (When price reverse, Does a candlesticks pattern entry was offered)

Above mentioned checklist, Is must have when we prepare any "Forex Trading Strategies",because these are strong points which are considered when we look to trade reversals and most important one for me strong liquidation after strong trend and after that attempt to recover and then was there any pullback entry was offered and then try to see the last but the strong that whether price reverse after that pattern amid strong momentum candles .

That is how We trade reversals and I would advice everybody to prepare a Journal or checklist to trade reversal or if you want to trade pullbacks I have shown some good strong points how to trade pullbacks in this blog and Would post again from time to time If situation demands or any requests are made.