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
There is hidden bearish divergence here on the daily chart. Price has formed a lower high while the oscillator has formed a higher high. Price also failed to closed above the purple 200 SMA previously and looks to have failed again.
The pair is also trading right under its purple 200 SMA on the 4-hour chart and look for this resistance to hopefully hold. A regular bearish divergence had formed where price made a higher high while the oscillator did not and it looks like the pair has now turned.
I'm going to short now at the market price of 7110. My stop loss (SL) will be placed at 7210 which right above the purple 200 SMA and psychological resistance level of 7200. My profit target (PT) will be 6900. I plan to move my stop loss to breakeven if price falls to 7010. I will post any additional adjustments in my comments section below.
Sell NZD/USD @ 7110 | SL: 7210 | PT: 6900
