NZDJPY Price Action Analysis – 30th Mar 2018
NZDJPY has been having a consolidation on the H4 chart. By analyzing the chart, it seems that a breakout towards the upside has the more chance to take place. The first H4 candle came out as a solid Bearish candle; then the next one came out as a Bullish Doji reversal candle. If the current H4 candle engulfs the last H4 candle and we get an H1 breakout towards the upside, then buying the pair would get us some green pips.
The level of 76.645 has been working as the level of Support here. If this level is held and produces an H4 Bullish Engulfing candle, then we would have to wait for an H1 breakout at the level of 77.000 to take a long entry. Let us have a look at the summary of the trade…
- Buy Stop Order: 77.000
- Stop Loss: 76.645
- Take Profit: 77.580
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
This kind of trade setup offers 1:1 risk and reward ratio. As we know, 1:2 risk and reward ratio usually we aim at. However, the market does not always offer entries with 1:2 risk and reward ratio. Especially, today is the last day of the week and the month. Thus, it might be a sluggish day today. However, if the breakout does happen, then we would not have to wait too long for the price to hit the target. This trade setup is intraday traders’ one of the most favorites setup, so we would see enough liquidity if the breakout happens.
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