NZD/USD setup found

[johntsai]

day trsi is in sell zone

4h trsi is in sell zone with a resistance at 5688

m30 trsi blue cross gray twice for sell entry right around 5605 resistance sk.

if price going down, it might hit 61.8 fib ratio at day chart cluster with fib ext of 161.8 from 4h chart.

[johntsai]

the setup didnt work out.

can anyone help me to analysis what is going wrong??

thanks

[Lifesong]

Hi Johntsai

Quick analysis of your trade the following observations:

1. Daily TRSI was relatively flat with no clear indication of trend;
2. 4h TRSI was moving up at steep angle since bouncing off SK support even though it did not cross yet;
3. On 4h chart we had SK support @ 0.5534-64 that was tested before between Apr 20 to 22, but never gave way;
4. Looking at 4h chart you would also notice a hammer candlestick formed a few bars before signaling the possibility of a reversal.

Taking especially points 3 & 4 into account I believe you anticipated a trade that wasn't in the cards as the signs of reversal were eminent.

Lastly I don't know whether you subscribe to Fibmaster daily updates (http://www.dailyforexcharts.com/ (http://www.dailyforexcharts.com/)), but he also warned in Apr 27th update of support risk @ 0.5500-50 level.

Hopes this helps a bit and good luck!

[johntsai]

thank you very much for the response. i will keep in mind about trsi flat for the future setup.

[Raj]

There may be a possible short...if we can form a high here at the current price...the bulls have scored their short term target, and we're sitting at the bear 618 resistance...there is a chance the bulls may want the 127% and Trendline, so we should wait for bear CF's

:)

[Raj]

In addition though...the Daily will most likely close with a Morning Star CF, so bigger moves should be to the upside (perhaps we'll get a test of it in the form of a short scalp)

:)

[Raj]

And we're pippin!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thank-You FOMC

[johntsai]

your fib level is so familiar. did you use the fib strategy from one of the trader at forexfactory?

[Raj]

Hello johntsai....no i didnt...its 618 resistance and a bear head and shoulders setup from last week

:)