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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