Today we’ve got a bullish opportunity on the NZDUSD daily chart, a situation which War Room members were anticipating in the chat room last session.
We’ve recently seen the market fall into heavy consolidation and create an unstable trading environment. Now price has broken out of the resistive containment line and closed about it in some decisive bullish price action.
The market has tested the breakout level and confirm it’s holding as support by printing two bullish rejection candles on the chart. This has also created a higher low. From here we can anticipate that NZDUSD is really to start pushing upwards.
As per the Price Action Protocol retracement entries are favored as they are reversal candles and we ideally want to tighten up our stops.
There is a lot of reward potential here as the charts look like they are shifting into bullish mode, this could potentially be the bottom of a much larger move.
Trade Replay
Revisiting this NZDUSD trade setup that we covered last week, where the market broke out of a resistive containment level, retested it as new support and dropped a bullish rejection candle combo for us price action traders and war room members to take full advantage of
We initially seen some nice bullish responsiveness from this trade setup after going for the retracement entry. Using the second rejection candle we were able to tighten up our stop loss to increase the trade reward potential.
When the bullish momentum picked up we seen this market absolutely explode to the upside, like a volcano that was building immense pressure that blew off it’s top. The two bullish rejection price action signals were the clue here that this volcano was ready to go, and by dropping two rejection candles, traders even had a second chance to enter this one.
This is why we live and breath price action trading, because no other type of technical analysis is going to get you into this huge price explosions as early as price action can. If you are keen to learn more and think price action based trading is the thing for you, then you will benefit greatly from our War Room membership, stop by and check it out.