The following is the daily chart for EURNZD as of DEC. 30th., 3AM EST. If you observe this you can see that it is on a trend line and the trend line was broken with a strong bearish candlestick. So I am expecting the graph to come down more. Check the following daily chart for this currency pair.
eurnzd daily chart trend line broken
The strategy is very simple and works very well. You can find a lot of trading opportunities using this strategy. This strategy involves only parabolic SAR indicator with default settings. Indicators: Parabolic SAR with default settings (Step: 0.02, Maximum: 0.2) Time Frame: Hourly But you need to observe the parabolic SAR on the higher time frame of daily chart. Markets Sessions … [Read More...]
The following is the EURNZD graph after around a week after the trend line broken in daily chart for the above currency pair. If you observe the chart now you can see that all the three indicators have reached the oversold region.
1) Stochastics is below 20 line which is the oversold regrion.
2) CCI is below -100 which is the oversold region.
3) Moreover the RSI is also below -20 line. Generally RSI coming to below 30 occurs rarely. So that means it has reached a strong oversold region. So if any short trades are open for this currency pair its better to close them now. What do you guys say?
Well on EURNZD it looks like the trend you’re talking about is broken, but the longer term downtrend is still there and could provide a bounce. I’d be patient and turn this one into a medium-term trade, personally.
Yes. I agree. Moreover if you observe the CCI and Stochastics, they have reached the oversold region now. The RSI has also crossed the 30 line which generally rarely happens. So I think now the trend will reverse and it may bounce at the trend line again.
Saw your blog bookmarked on Delicious.