i believe we are completing the 4th wave /B wave of 1-2-3-4-5 / correction.
We have formed a contracting triangle with abcde waves and the price should breakout of the triangle upwards
Wave E seems to be done however POINT 1 ( anchored note ) : this could be just an ( a) of E, but since the price is very close to C wave we would take this as completion going into the trade.
Typically i like to play the triangle scenario safe and market buy on the breakout of the BD trendling.
however POINT 2: the preferred target for me is the 0.70xx range and the RR just isnt that great standing at about 1.22
The RSI is showing us a hidden with a nice candle to close the day. FOREXCOM:NZDUSD
Trade how i am taking would be market buy at about 0.680x area
target 1 : 0.70xxx a potential of 3 RR
target 2 ( being positive ) : 0.71 a potential of 4 RR
Stop loss : 0.6735/0.6712
pips from entry : 65-88 ( your risk management your own preferred stop loss )
i like to place the stop loss below the suggest low of E at 0.67350 ish , can be placed few pips below the low of C at 0.67120 or something. it all comes down to your Position sizing and risk management.
ill be looking carefully at the Stop loss and move accordingly.
My last trade was worth only a small amount of profit on the overrall trade. losing one position with stop loss and carefully taking profits on the other one before price moving in the different direction. link below if you want to check that out.
TP remains the same. 2/3 entries are in
the fact that we wicked to the bottom trend line and bought up is a good sign and gives us confidence that our count is right.