This is a follow-up to the Trade Idea – NZD USD – 02-12-2016 recently posted. The previous trade consisted on a sell limit placed after the third touch on the downward trend (see post picture above). That particular trade I had no complaints about and the reason I traded the opposite way a few days later was because the price action was responding really well to the upward trend line, which also had 3 touches.
This was actually a Trade Alert (Trade Alert – NZD USD – 12/10/2016) posted by our member Steven. Thank you!
NZD/USD – Back for Seconds
This particular trade was half the size of my normal trade and the reason for that was because I was trading against the long term trend and wanted to manage risk. This trade closed for a 67 pip profit. Moreover, considering the strong/long term downward trend and the upward trend coming off a higher low, I think we will be seeing a consolidation.
Share your thoughts.