The Trend is Your Friend
Updated
Below you'll find an analysis on the NZDJPY, Daily timeframe.
Price is approaching the downward trendline and the 77.688 level (23.6 fib level and swinglow of 31st of October).
If this level proves resistance, I expect price to fall to 76.105 (0 fib level). 75.930 provides a strong support so a potential trade on this setup could be to open 2 small short positions, both with the SL above the TL (according to your risk appetite). TP1 just above the 76.105 level and when TP1 is hit, move SL from the remaining position to entry level. Let potential profit run, and secure it by moving SL lower (or use a trailing stop).
Feel free to ask any questions or post any comments that you might have!
Enjoy the day, Happy Trading!
Price is approaching the downward trendline and the 77.688 level (23.6 fib level and swinglow of 31st of October).
If this level proves resistance, I expect price to fall to 76.105 (0 fib level). 75.930 provides a strong support so a potential trade on this setup could be to open 2 small short positions, both with the SL above the TL (according to your risk appetite). TP1 just above the 76.105 level and when TP1 is hit, move SL from the remaining position to entry level. Let potential profit run, and secure it by moving SL lower (or use a trailing stop).
Feel free to ask any questions or post any comments that you might have!
Enjoy the day, Happy Trading!
Note
Price now testing trendline, let's see if it holds or breaks to the upside.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.