To start off this trading week we’re looking at a double Inside Day candlestick pattern that has occurred on the NZDUSD daily chart. Both Inside days do have a negative close in there body, giving the setup slightly more bearish value.
Because this market is in a steep downtrend, we are only looking to catch breakouts to the downside, we don’t want to trade bullish into the mean value.
There is weekly support sitting just below, which is concerning. If the weekly level breaks, we will most likely see a large bearish price action event as the market falls into new lows. If the level does hold, then the setup will probably not work out, but our split money management system that we teach inside the War Room is the perfect tool here to remove all risk from this trade setup quickly and easily.
Looking forward to seeing the weekly support fail, but keeping in mind ‘worse case scenario’.