NZD/USD has been showing a bullish trend in recent times, with the price testing the resistance level at 0.65000. However, after a period of distribution, the price has been testing an ascending trendline over a support level. This trendline acts as a key level of support, and if the price were to break below it, it could indicate a potential short-order opportunity.
In technical analysis, trendlines are used to identify the direction of a trend and to help traders make decisions on entering or exiting a trade. In this case, if the price breaks below the ascending trendline, it may suggest that the bullish momentum is losing strength and that the price could potentially move lower.
Traders should keep a close eye on the price action near the trendline and consider entering a short position if the price does break below it and should always have a well-defined risk management plan in place to limit potential losses as Plancton's strategy suggest.
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Follow the Shrimp 🦐
Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
⚫️ Black structure -> >4h structure.
In technical analysis, trendlines are used to identify the direction of a trend and to help traders make decisions on entering or exiting a trade. In this case, if the price breaks below the ascending trendline, it may suggest that the bullish momentum is losing strength and that the price could potentially move lower.
Traders should keep a close eye on the price action near the trendline and consider entering a short position if the price does break below it and should always have a well-defined risk management plan in place to limit potential losses as Plancton's strategy suggest.
–––
Follow the Shrimp 🦐
Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
⚫️ Black structure -> >4h structure.
