NZDUSD Strong Reactions To Support & Resistance Levels
Aktualisiert
Level A: 0.71087 - 0.71499
Level B: 0.72118
These were determined by 4 or more "touch and retrace" points on the 4 hour chart. Three Major reactions were observed with price action around these areas, and are labelled on the chart.
Scenario 1: When a trend drives the price toward Level A the trend weakens, and we see more signs of uncertainty as to where the price is moving more often a "doji". Trend analysis indicators such as the Average Directional Index respond to this late. A drop down to lower timeframes shows more candlestick and chart patterns such as hammers, and double tops/bottoms.
Scenario 2: Downtrend moving sideways before trend continuation/reverse: When the bounce provided by the levels is not strong enough to reverse a trend, and the markets begin to move sideways, signs of uncertainty again show, with longer wicks as the bulls and bears battle for control, again in lower timeframes. More potential trades lie in these areas.
Scenario 3: When the price moves sideways in Level A: Whilst within the level, there are a lot of candlestick patterns with both bullish and bearish indications, but most provide no actual insight to the markets' direction. After the price breaks out of the level and moves sideways on it however, Potential trades are revealed yet again.
As of the time of writing, the price is approaching Level B, and there is some room for trades to test this out.
Comments, constructive criticism and more reactions are always welcome, so let me know what you think about these potential trades!
Level B: 0.72118
These were determined by 4 or more "touch and retrace" points on the 4 hour chart. Three Major reactions were observed with price action around these areas, and are labelled on the chart.
Scenario 1: When a trend drives the price toward Level A the trend weakens, and we see more signs of uncertainty as to where the price is moving more often a "doji". Trend analysis indicators such as the Average Directional Index respond to this late. A drop down to lower timeframes shows more candlestick and chart patterns such as hammers, and double tops/bottoms.
Scenario 2: Downtrend moving sideways before trend continuation/reverse: When the bounce provided by the levels is not strong enough to reverse a trend, and the markets begin to move sideways, signs of uncertainty again show, with longer wicks as the bulls and bears battle for control, again in lower timeframes. More potential trades lie in these areas.
Scenario 3: When the price moves sideways in Level A: Whilst within the level, there are a lot of candlestick patterns with both bullish and bearish indications, but most provide no actual insight to the markets' direction. After the price breaks out of the level and moves sideways on it however, Potential trades are revealed yet again.
As of the time of writing, the price is approaching Level B, and there is some room for trades to test this out.
Comments, constructive criticism and more reactions are always welcome, so let me know what you think about these potential trades!
Kommentar
Setting Alerts on these levels may provide numerous trading entries!
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