This suggests that NZDUSD will continue further down. A difficult pattern to trade, ABC patterns tend to fool everyone, bulls and bears by having two strong moves though choppy in themselves interjected by a counter move in the middle. ABC are counter trend moves to blow off overbought or oversold conditions before resuming the larger trend, in this case it is down.
Kommentera
⋅
Somehow the NZD is showing strength. It already blew past the sell signal on the 4hr and now it is on a buy signal in the 4hr.
Kommentera
⋅
There is the next sell signal. Daily looks to turn over. The hypothesis stays the same: this likely sees new lows.
Kommentera
⋅
Well not all signals can be profitable that is why we have stops.