I was looking at the chart of NZDCAD for many days, and finally, it has given some direction that we can use to trade. In trading, we should always wait for a clear setup. Waiting is better than a loss.
There is a bullish trade opportunity in the NZDCAD. In this post, I will explain how I did this analysis. I am sure it will be helpful for you.
| Currency Pair | Signal | Timeframe |
|---|---|---|
| NZDCAD | Bullish | Daily |
Confluences
NZDCAD was in a retracement period for a few months. Now retracement is about to end, and a new bullish impulsive wave will form. I made this prediction using the following confluences.
- Demand zone
- Impulsive wave and retracement wave
- Broadening Pattern
How I Conducted a Bullish Analysis for NZDCAD:
Wave Analysis: The first step I took was a wave analysis. This involves identifying both the impulsive and retracement waves. This foundational step is essential in analysis because there’s a natural rhythm: after an impulsive wave forms, a retracement wave will follow, and subsequently, another impulsive wave will develop. It’s crucial to leverage this predictable market pattern.
Demand Zone Identification: Next, I pinpointed the demand zone, which indicates where the price might likely bounce in a bullish direction. In this process, I utilized the Fibonacci tool to enhance the accuracy of my findings.
Waiting for a Bullish Signal: Having gathered the above insights, I patiently waited for the market to exhibit a bullish signal, specifically in the form of a trade entry chart pattern. Today, I observed that the price formed a bullish broadening pattern.
With these three major indicators aligning, I concluded that a bullish impulsive wave is on the horizon. Now seems to be the opportune moment to initiate a buy trade, preferably above the identified demand zone.
Conclusion
Waiting for the right time to trade with patience is important. If you open trade quickly without verifying confluences in a sequence, you will lose.
I will highly recommend being patient and doing analysis with peace of mind. Trading is easy; you need to control yourself.
I have done my best in this NZDCAD analysis. I hope it will bring some profits in upcoming days. But a trader must also be ready for worst situation.