Reply To: NZDJPY

#7961
Cristian Ravalli
Moderator

Hey Daren,

Trend lines are not really something we massively promote at the Lazytrader, as we think they can be rather subjective. I don’t really use Pivots on my charts and therefore have to trust you on this. I also agree that we are in a downtrend.

For me personally, the biggest reason not to take the trade is that there isn’t any clear level of resistance as you say. Additionally, each leg going south has become shorter compared to the previous one. In both length (number of weeks and number of pips).

As far as I understand it, and I have been going through the Pin bar Reversal quiet a few times, you always want to see a reversal pattern (double bottom/top, head and shoulders) on the lower timeframes to engage. These are the two factors that are always required. Because we are talking about the weekly here, we would look at the 4H. On the daily, we would look at the 1H.

Not bothered about the news very much, as you can never predict which way it’s going to go. It’s either sudden death or will help the trade. Hope this helps.

Anyway, this does not mean the trade can’t work. It’s just not one I would personally take. You got to make your own stats and if you can make this kind of trade work for you, then why not take it?

Cheers
Cris

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