NZDJPY Analysis by Ali Muhammad-
October 18th 2020 – Jan 15th, 2021
NZDJPY Analysis: Looking to sell on retracement of price to upper trendline of broadening wedge pattern
Trend: Bearish Trend, Lower Low formation after HH has confirmed the change of trend.
Trade Idea: NZDJPY was in uptrend ( price was forming higher highs plus higher lows ). Recently price has broken previous higher low which is definitely sign of reversal in trend. Now price has been retracing upward and it will soon give bearish impulsive move to complete its wave to one of three flag limits. Price reaction at flag limit area will decide which one flag limit from three will hold. Engulfing a flag limit is a clear sign that it will go to next flag limit. This is a clear and simple NZDJPY Analysis.
Not only this here i am going to show you live example of wolfe wave pattern in NZDJPY analysis which will add power in our analysis as well as this pattern is our third confluence after Trend and broadening wedge formation. I will discuss both of these price patterns separately.
Here is the NZDJPY analysis.
Wolfe Wave Pattern
Wolfe wave is a reversal Pattern. I will not discuss wolfe wave in detail as i have already discussed this pattern in detail. To learn about Wolfe Wave CLICK HERE
In the image of NZDJPY analysis attached below Price is following rules of Wolfe wave as there is formation of fives waves as well as lower low formation. Important thing here is we are not trading wolfe wave here we are just adding a confluence to our analysis to give power to Trading setup. If we had been trading wolfe wave then we should have entered after 5th wave. But main thing to think about here is that wolfe wave has given us a target of price. Where it will go? How far it will go? how much probability? Wolfe wave has answered all of these questions.
Let’s see in the chart
in the above chart, i have mentioned 5 waves of wolfewave pattern as well as target of price. Understood !!! i hope. Ask me any related question by commenting below.
This pattern is used by instituonal traders for stoploss hunting. This is very simple i will show with chart only in NZDJPY chart because in this post i will only talk about nzdjpy. if you want in detail education about this pattern comment below.
This pattern break highs and lows in every wave because stoploss levels of retail traders are always above or below the high or low of price respectively.
Lets see in the chart
This was in detail analysis of NZDJPY.
Stay Patient and Trust Your Journey
Note: All the viewpoints here are according to the rules of technical analysis. we are not responsible for any type of loss in forex trading.