Thursday, April 29, 2010

NZD/USD Daily

Here is a daily of the NZD/USD pair. As you can see price has been struggling upwards in a very choppy fashion for the best part of three months. The pair has formed a vague corrective channel which I believe will continue to contain price until the next move down begins. I will be looking to short on a retest of channel resistance at 0.73. My stop will be at 0.7440 near the previous high.
Posted by Jared at 2:04 PM
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6 comments:

  1. GustavoMay 3, 2010 at 6:13 PM

    Hello Jared:
    Wich could be a confirmation for this move? Or how is possible to enter in a timely manner?
    Regards.

    ReplyDelete
  2. JaredMay 3, 2010 at 6:53 PM

    Hi Gustavo, a good place to enter this trade would be to wait for an impulse down (5 waves) and then get in after a 3 wave pullback. This may be almost complete as I write this. Here is a quick chart I did up of a possible count: http://imgur.com/UiN9V.png When entering trades after the 3 wave pullback after a 5 wave move, always keep your stop at the start of the 5. So right now you could short at 0.7295 or so with your stop at 0.733 which is pretty small risk.

    ReplyDelete
  3. GustavoMay 4, 2010 at 2:33 AM

    Thank you: I am seeing the pair 0.7315 now and entering with stop in 45. I supose what if I am stopped the count is invalidated.

    ReplyDelete
  4. JaredMay 4, 2010 at 10:43 AM

    Sorry do you mean your stop is at 0.7345 or 0.745? I am holding from 0.73 with the larger of the two as my stop however I know some people are averse to having large stops which is why I mentioned the smaller stop above.

    ReplyDelete
  5. GustavoMay 4, 2010 at 6:19 PM

    My stop is in 0.7345, because I am trading with my ususal leverage, and one stop bigger than 30 pips is suicide to my account.

    ReplyDelete
  6. GustavoMay 5, 2010 at 12:11 AM

    I am out in 0.7235

    ReplyDelete

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