As mentioned on the callout, we're likely to see a run up into the old high and beyond to take them out. Or it'll not take it out and just keep pushing down. This is a followup of the earlier NZDUSD idea mentioned below under related ideas. Good luck!
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So, the first move went right, the second was however not correct. Now the question is why I missed the bearish ordeblock. Upon inspection I noticed a slight detail: 1) wicks, they're rather unreliable when there's hardly a body. Using them as orderblocks can work but it's best to zoom in even more to find the exact spot at which smart money has accumulated orders.
The 45 minute chart worked nicely to find the first block. Here's the second bearish orderblock I found using the 15 minute chart. Sorry for the tiny little candles I can't show it to you without squeezing the chart:
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NZDUSD completed the cycle going back down, I've closed the long, got stopped on the short. Now I'm back in the short position.
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Not going to hold on to the short for too long after seeing a swing low form here.
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Sorry, I meant to paste the chart but it didn't work out well. Here it is. The swing low:
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This is what I meant when I said I wasn't going to hold the short for too long. Right at the moment that bullish candle formed we saw massive support off a bullish orderblock. Here's the chart:
Trade closed manually
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Idea completed.
Note to self: better analyze he wicks of the orderblocks to find the exact spot with the beefiest body of the candle. Wicks could be okay, but only if it's no more than about 1/3rd of the body. Trade went well: 1 long // 2 shorts. 1 exact target hit, 1 near target short, closed manually because of price action. 1 short that was break-even.
is there a particular advantage on using 45 min charts?
UnknownUnicorn468659
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Hey there Trade2020, thanks for asking! I personally believe timeframes are all relative to what one's trying to measure. In this case all we're really looking for is a sign for Smart Money buying into a down market. Every strong move down viewed on a 1 hour and 4 hour should mostly retrace up to a certain point. Right here I'm trying to find the height of the retracement. The 45 minute chart is the first chart down from the daily/4h/1/- that showed me a bullish candle in the midst of bearishness, so I thought I'd use it to show the 'potential' height of the retracement.