Occasionally
the signals one sees on the different time-frames can contradict each other
quite strongly, as is the case with NZD/USD right now. The pair has been moving
to the upside for a month now, until it finally reached a resistance at 0.7220,
formed a very telling hanging man candlestick both on the daily time-frame and
the four-hour time-frame and started falling. However, NZD/USD also formed
a hammer candlestick at 0.7170 and its move to the downside is clearly
interrupted. Usually in a situation like this I tend to rely more on the signal
I see on the larger time-frame, in this case the hanging man candlestick on the
daily time-frame. That said, the signal on the four-hour time-frame indicates
that the pair might form a double top, which would only confirm the
aforementioned signal for a move to the downside.
Nice rally.
ReplyDeleteThe pair is on the rise.
ReplyDelete