Ending diagonals are another formation we like to trade - although these can be very tricky and VERY frustrating. It’s really hard to determine how far the 5th wave of the ED will go before changing direction.
We drew our two trendlines in. Look for the currency pair to test the bottom trend line, go back up and then drop down.
Looking at the daily chart, it seems as if we’re forming a strong, impulsive movement so the larger wave down on this 5 minute chart could be the start of the retracement on the daily chart.
Again, use extreme caution when trading these. Check your announcements and definitely place your stops.
Good luck and we hope everyone has a great weekend.
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hi Ross,
I am looking at NZDUSD now have opened short position already, but looks a little too early. what would be your critical resistance level?
thank you,
Vytas
.6470 1ST
.6495 2ND
.6550 3RD
YEEE!!!
Revised
.6440 1st
.6470 2nd
.6495 3rd
.6550 4th