NZD/CAD Descending Triangle on Climactic Action Weekly Chart
The NZD/CAD has been in uptrend on the weekly and monthly charts for quite some time. What we see now is a head and shoulders pattern followed by a morph into a descending triangle (additionally, on the daily chart the head and shoulders pattern that is formed there as a "subpattern within the larger pattern" has a lower right shoulder than its left shoulder after completing, implying potentially greater weakness).
One basic principle is to think about where a pattern happens not just that it happens to determine its likelihood of working. In this case the context is one implying there could be a break through the floor of the pattern (because when this pattern has shown up in the past after a long uptrend and climaxing volume on large time frames, that has happened).
By a different volume feed, the highest volume bar is actually the week of the head of the shoulder (not shown here).
-Trade only with money you can afford to lose
-Always use a stop
-It's okay to be wrong about anything
One basic principle is to think about where a pattern happens not just that it happens to determine its likelihood of working. In this case the context is one implying there could be a break through the floor of the pattern (because when this pattern has shown up in the past after a long uptrend and climaxing volume on large time frames, that has happened).
By a different volume feed, the highest volume bar is actually the week of the head of the shoulder (not shown here).
-Trade only with money you can afford to lose
-Always use a stop
-It's okay to be wrong about anything
Nota
Trade closed. Stop reached.Watch for potential bat pattern/retracement near 0.98-0.99
(patterns can fail into others that succeed)
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.