NZDUSD – Buy Setup at Key Support of Expanding Triangle | May 22

NZDUSD – Buy Setup At Key Support of Expanding Triangle
On May 7th in our daily market commentary, we talked about the expanding triangle and how the overall structure was supportive for a bullish continuation, after a return to the bottom of said triangle. The pair is getting quite close to that support level around 8520/30. The order flow beyond such a structure suggests to us the upside is more favored, and this is further supported by ichimoku wave theory (a Y-wave structure).

Our Trade Idea: I’m placing a limit order to buy around 8520 with stops below the ‘big figure’ at 8500. Upside targets will be 8600 (daily 20 ema) while gunning for a larger move up to 8700+, ideally tagging near the upper 10% of the rising resistance line which currently comes in around 8790.

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • tyson

    why not wait for price action to form a buy signal at the support

    • Chris Capre

      Hello Tyson,

      Good question.

      1) It should have been explained in the article, but the price action context is already in place and supportive of our trade idea.

      2) Because we are not price action pattern traders – we actually trade price action in real time. PA signals can and often are ‘sub-optimal’, so we use price action context to find the more optimal entry.

      We go over this in much greater detail in our Price Action Course which you are welcome to join.

      Hope this helps.

      Kind Regards,
      Chris Capre