The video explains a sell trade setup on NZD/USD. It also explains why NZD/USD was chosen over AUD/USD despite AUD/USD is overbought and prone to retrace down.
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The video explains a sell trade setup on NZD/USD. It also explains why NZD/USD was chosen over AUD/USD despite AUD/USD is overbought and prone to retrace down.
Trade was closed at BE. :)
I am holding onto sell trade despite H4 closed above Butterfly-161.8% of XA because: - AB=CD is under construction, which is also a reversal pattern, so nothing but another sell trade will be sought at D. Therefore, it doesn't make sense to close existing sell position now. If AB=CD also fails to work for bears, we will exit.
2. 30% of Butterfly-level went up as NZD/USD made new. This level is now at BE of the trade, so we will close at BE if price returns.
3. USD-index has become oversold. It has almost reached the bottom made by COVID19-crisis, which is an ultimate support. Therefore, it will start correcting to upside sooner than later.