I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Sell NZD/USD
Kiwi blasted upward and over 75 cents yesterday, mainly due to a report by ANZ Bank saying New Zealand's central bank will RAISE rates to 8% on Wednesday! Will this really happen? Well most economists believe rates will remain unchanged. And if this happens, this pair will strongly reverse and ANZ Bank will get egged for lying. I'm going to go with the economists on this one. A great opportunity to cash in on "buy the rumor, sell the news".
There is also harcore crazy bearish divergence here. Price has made higher highs, while the oscillator has plateaued.
I feel this pair will pop up one last time so I'm going to short at 7530. My stop loss (SL) will be 7570. My initial profit target (PT) will be 7300.
Sell NZD/USD @ 7530 | SL: 7570 | PT: 7300
