News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/lKvEMf4QRe
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
A Fast-Acting Triangle Set-up in GBP/NZD

A Fast-Acting Triangle Set-up in GBP/NZD

2014-05-13 17:15:00
Kaye Lee, Head Forex Trading Instructor
Share:

Talking Points:

  • Triangle Pattern on GBP/NZD Daily Chart
  • Key Support Zone for Initiating New Longs
  • A Potential Entry Signal Flashing Right Now

Most triangle patterns involve trading breakouts. However, the other trade that is possible under these circumstances is trading bounces within the triangle, and that is the opportunity being offered in GBPNZD today.

Although the bias on the below daily chart is slightly toward the downside, the rising line of support has been tested multiple times, and thus, traders would expect to see a bounce on the lower time frames that just might continue to the upside.

However, because the trade is occurring within a triangle, it is wiser to be defensive and to use multiple positions so that the trade can be scaled out of at the first sign of trouble. Afterall, trading in sideways markets always comes with such heightened volatility.

Guest Commentary: Daily Triangle Formation in GBP/NZD

GBP/NZD is trading within the confines of a triangle pattern on the daily chart.

The four-hour chart below readily provides a zone of support based on previous support and resistance coinciding with the rising trend line from the higher time frame. The final support zone has been estimated as 1.9382-1.9442, which is a zone 60 pips deep.

Guest Commentary: Key Support Zone for Buying GBP/NZD

Previous support and resistance levels on the 4-hour chart of GBP/NZD helps define the key support zone where new long positions can be initiated in the pair.

The potential reward to the topside within the triangle is approximately 200 pips or more, which affords a very attractive overall risk profile of 3:1.

Regardless, the trade is to be taken using the lower time frames in order to provide an optimal risk-controlled opportunity. For this, the hourly chart below is used.

At this level of magnification, a good amount of momentum has been visible recently, but it has been countered by a large and significant bullish engulfing candlestick coming out of the support zone. As price has pulled back down slightly, aggressive traders may choose to enter at this point at a better price close to 1.9468, which would be perfectly legitimate and acceptable.

Guest Commentary: GBP/NZD Long-Entry Signal Flashing Now

Long positions can be initiated on the hourly chart of GBP/NZD using entry signals including bullish engulfing patterns, one of which is apparent already.

More conservative traders may wait and see if price will give a lower low in the next few hours, and would consider bullish reversal divergence, pin bars, and/or further bullish engulfing patterns as viable entry signals from there.

Candidly, the author is more than satisfied with the current bullish engulfing pattern. Even if the trade stops out, it will do so on small risk. As always, however, two or three attempts can be made in order to capture the move if and when it happens.

By Kaye Lee, private fund trader and head trader consultant, StraightTalkTrading.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES