NZDUSD: The Price Channel and How to Trade
New Zealand Dollar/U.S. Dollar FX:NZDUSD
The same market conditions and pattern as it is in EURUSD . The price is moving in the borders of a horizontal price channel . It means that we can use the rules of trading for such type of markets. We trade reversals from the borders or wait for breakouts and catch momentum.
We can sell from the resistance with stop orders above the local swing high. It will be better to sell as close to the resistance as possible. It will give a better stop size and risk/reward ratio. Profit targets should be based on SMAs and the bottom line of the price channel .
We can buy following a breakout above the resistance. Stop orders must be placed below the local swing low. Profit targets should be based on round numbers.
Risk per trade must be no more than 1-2% from the capital.
P.S. as I don’t use like-bots and other solutions that show great “interest” to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov