Hi Traders! NZDCAD forecast update and follow up is here. On February 16th I shared this “NZDCAD Buy Idea From Strong Support Zone” 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!
NZDCAD H4(4 Hours) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting the price to continue higher further until the strong support zone holds. On the H4 chart, the price action followed my analysis exactly as I expected it to. The price which was moving lower reached the strong support zone and respected it. In addition to this, we had a bullish divergence that had formed between the first low that has formed at 0.91461 and the second low that has formed at 0.91037 based on the MACD indicator which we may consider as a fact provided by the market supporting the bullish view. The price then moved higher and broke above the most recent downtrend line which we may consider as another fact provided by the market supporting the bullish view. The price then moved higher further and delivered around 200 pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
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).
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,
Certified Financial Technician