We spoke about the EURNZD market recently, discussing a bearish trading opportunity that presented itself of the Daily chart. This market was obviously in an established downtrend, so we were looking to position in with the bearish trend momentum.
The opportunity here was a indecision candle that formed when price stalled at a market swing point. A swing level is an old level that is now being re-tested on the inverse side.<.p>
Our short trade was triggered when price breached the signal candle lows. Once we were triggered into this trade the market continued to trend down providing a nice easy and quick +350pip return!
Those still positioned in this trade should have safeguards in place to avoid losing profits from a retracement, which could happen very soon, because the weekly and daily chart price are very extended from their mean values, (an early warning sign that a correction move is coming). Unless you’re looking to hold much longer term, trade smart.
If you want to learn more about catching big moves from trending markets and learn about the relationships between mean value & price to improve your trading and chart reading skills, check out our comprehensive Price Action Protocol for more information.
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The markets have been very choppy as of late, especially the major pairs, creating difficult conditions to make make money. That’s why we’ve moved our attention to the cross pairs which seem to be producing much better conditions.
We’ve spotted this setup on the EURNZD cross pair, it’s the only thing that looks worthy of attention. This is a Indecision candle signal, note the tails protruding from each end of the candle body. The Indecision candle formed in what we call a ‘hot spot’ in the trend, where price meets a key level plus the trend mean value.
This candle did have a moderate bullish close but we are only looking for short trades to get us in with the overall trend momentum. We need to see price break the candle’s low to trigger the setup. Trading with the trend is trading with the odds in your favor!, you’ve heard the saying the trend is your friend, well it’s true.