NZDCAD: Trend Reversal Signal
The price is forming a double top, which gives us a trend reversal signals. The same goes for a bearish divergence. MACD is bearish, and it is supporting a possible downward movement. RSI confirmed the price reversal in the overbought zone. DMI is bullish, but ADX line is moving down. It tells us that the buyers are not s strong right now.
Here is an example of a possible short trade:
Sell below 0.87245
Stop above 0.87450
Take Profit at 0.86595
Risk per trade must be no more than 1-2% from the trading capital.
This short trade is rather risky as we have to trade against the main bullish trend in the daily chart. Also, if you want to get an additional bearish signal, it will be better to wait for a breakout below SMA20.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Here is an example of a possible short trade:
Sell below 0.87245
Stop above 0.87450
Take Profit at 0.86595
Risk per trade must be no more than 1-2% from the trading capital.
This short trade is rather risky as we have to trade against the main bullish trend in the daily chart. Also, if you want to get an additional bearish signal, it will be better to wait for a breakout below SMA20.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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