Waiting for the Next Buy Signal on NZDUSD

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nzdusd 8h swing

The NZDUSD this year was a very bearish market, and we just recently seen it sell off aggressively – almost reaching the 60c level. Since then the market triple bottomed and has now exploded upwards, recovering from recent losses very quickly.

Price is moving too aggressively to work with on the daily chart, so I am scaling down to the 8 hour charts, where we can see a real nice trending structure.

What I am waiting for is a retracement into a previous swing high, and looking for that level to hold as new support to create a swing level. This will be the ‘hot spot’ for a nice swing trade buy signal to form, and be a good opportunity to get in with the trend momentum.

One problem I’ve noticed with a lot of trend trading, is that although traders get in with momentum – they get in out of position. This is a good example of that sort of scenario – we need to wait for prices to correct and buy in at the key turning points. Then we’re in at a good position, and a good price.

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The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.

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