The pair NZDUSD has been volatile for the past week, which has hit many of my stop losses. It has finally touched for the second time in the bigger structure, which we then can predict it to move to the upside, effectively completing the structure by touching for the third time at the top of this picture and potentially breaking out. The bigger structure is that of a descending channel, which means that it is possibly a huge impulse to the upside. However, we should not jump to conclusions and wait for confirmation that the market is moving to the upside by watching out for a bull flag or a correction phase of any sort.
Steps To Take
What's a bull flag?
A correction phase in the hourly chart typically consisting of 6 to 8 candles. The market should be of an impulsive nature from below, which will form a correction phase, which will then impulse upwards.
Steps To Take
- Wait for a bull flag or a correction phase
- Buy at the 6th candle
What's a bull flag?
A correction phase in the hourly chart typically consisting of 6 to 8 candles. The market should be of an impulsive nature from below, which will form a correction phase, which will then impulse upwards.