Hi Traders! NZDCAD forecast update and follow up is here. On November 12th I shared this “NZDCAD Buy Idea After Triangle Breakout” post in Trading View. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea:
NZDCAD H4(4 Hours) Chart Current Scenario
On the H4 chart the price action followed my analysis exactly as I expected it to. After the breakout of the triangle pattern the price was holding above the strong support zone and it moved higher further delivering around 170+ pips move so far.
On the H4 chart the market provided us with various facts supporting the bullish view. We had a pullback with the price creating a bullish hidden divergence between the first low that has formed on 4th November 2020 and the second low that has formed on 13th November 2020 which we may consider as a fact provided by the market supporting the bullish view. We also had a bullish engulfing candle pattern that had formed after that which we may consider as another fact provided by the market supporting the bullish view. In addition to this the strong support zone was holding and there were no signs opposing this bullish view. Then as you can see in the screenshot below how the price moved higher after that.
Currently, on the H4 chart, we have a potential bearish divergence in play based on the MACD indicator. This is something that we need to pay attention to. So if you are still involved in the buys then this is a good place to consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
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So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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To your success,
Vladimir Ribakov
Certified Financial Technician
