This looks like a good point to start selling. Maybe with NFP coming up, we could build a position where we aren’t at risk anymore.

In this chart you can see that we are in between the 618 and 786 which means we have a better risk-reward ratio (based on price structure) Also both RSI and Stoch are synched with oversold signals with hidden divergence. MACD indicates that we are losing momentum. At the end of the ABCD pattern you can see that we are entering a ranging phase on the small time frame. If positions jumps up, I might be tempted to sell it again.

7 hours after trade

By this point, people could say that the head and shoulders is invalidated -However I'm assuming that we cannot make a higher high because price has created a neckline. -As we approach weekly R1 we could form a double top. -I'm only going to trade the double top if I see similar doji form relative to the last higher high -Anything above 7.3100 is a no go -Current position at 0.71900 Stops at 72700 -Short again at 0.72900 Stops at 0.73100

3 thoughts on “4Hour NZDUSD Head&Shoulders”

  1. Daniel Jonson says:

    Entered Short at 0.71900 with Stops at 0.72700

  2. Jim Reddihough says:

    Still looking very bullish

    1. Daniel Jonson says:

      You may be absolutely right sir, but I’m going to follow my plan consistently and try to hedge my losses if I trade for a double top. Since I traded pass the 618 my risk to reward ratio is .382 to .618 for a double top trade. On a fundamental note – I’m going to remain a strong bull for USD no a six month outlook.

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