A Textbook Reversal Trade on AUDNZD
Nice break of the local structure level and retest. A reversal trade will never get a perfect than this.
Have a look at the minor support level, the way price actions reject this level shows that there is some buying momentum was there and at the same time RSI also show an oversold and divergence suggesting lack of selling pressure.
Since all of these confluences are aligned nicely, we can conclude that the possibility of market reversal is much higher at this level.
So what happened after that?
Price ended up breaking above the local structure level and this is where we placed a long trade as you guys can see, we were able to gain +2.84R from this trade and as a percentage, we were able to gain +1.42% from this trade.
Have a look at the minor support level, the way price actions reject this level shows that there is some buying momentum was there and at the same time RSI also show an oversold and divergence suggesting lack of selling pressure.
Since all of these confluences are aligned nicely, we can conclude that the possibility of market reversal is much higher at this level.
So what happened after that?
Price ended up breaking above the local structure level and this is where we placed a long trade as you guys can see, we were able to gain +2.84R from this trade and as a percentage, we were able to gain +1.42% from this trade.