Hi Traders! Today I share with you an insightful buy trade setup that I found in NZDUSD. We are going to perform muti-timeframe analysis from the higher timeframe to two timeframes lower and see if they all coincides and provide evidences to support this bullish view. Lets start the analysis now, first lets analyze the daily chart.
NZDUSD Daily Chart – Bullish Trend Pattern
On the daily chart we have a bullish momentum and the price has created two higher highs, higher lows and the price has currently moved higher again creating the third high thus forming a bullish trend pattern. Generally as per the book we may now expect possible pullbacks to happen and then we may look for buys with bullish evidences (evidences could be in the form of (candle stick patterns, false breaks, trend line breakout etc…) supporting the bullish view).
NZDUSD H4 (4 Hours) Chart – Higher Highs
Now lets analyze the next lower timeframe that is the H4 chart to see if we can find any evidence that supports our bullish view. On the H4 chart we can see the price which is currently moving higher has created a higher highs pattern, that is the price has broken above the previous swing high and is currently moving higher we have the confirmation for this in both the MACD indicator and RSI indicator as we have higher highs created on both. So these two timeframes support our bullish view now lets move on to the next timeframe and see if it supports our bullish view.
NZDUSD H1 (1 Hour) Chart – Bullish Trend Pattern
Analyzing the H1 chart we can see that this supports our bullish view perfectly as the price has created three higher highs, higher lows which is a bullish trend pattern. So everything looks good here for the bulls and we may now look for pullbacks and then buys with bullish evidences.
How exactly to enter the trade?
There are multiple trading strategies that could be used in this specific setup. If you would like to learn more about the way we handle this setups check out the Traders Academy Club.
NZDUSD Technical Analysis & Forecast Summary
Lets recap and summarize the analysis we had so far:
NZDUSD Daily Chart:
- Bullish Trend Pattern
NZDUSD H4 (4 hours) Chart:
- Higher highs
NZDUSD H1 (1 hour) Chart
- Bullish Trend Pattern
If you have any further questions, feel free to drop a comment below!
Yours to your success,