Directly from Vladimir Ribakov's Live Trading Room
We have a Bullish opportunity to follow on this pair. If you have been following with me on this pair we have been all about selling and now we are getting ready to buy. Let me explain, if you look to the Daily charts we can see that we could have a Bollinger Band duplication to around .8081 area. At this area the duplication also meets the 200 Daily Moving Average, the Stochastic indicator is becoming oversold, we have a trend line that would be tested at this level and we also have a channel duplication around this level. All of these confirmations help us in determining the direction of price and at that level these confirmations indicate an up move. So how can we join? if you look to the H4 chart we can see at this level it is possible to have 20 candles riding the Bollinger Band which is another visual indicator of direction change. If price makes it to this area we will be looking for the completion of the Bullish divergence with the combination of the RSI indicator at an extreme. With a clear stop in the form of a Bullish candle pattern ie Harami, Engulfing, Kicker etc will give us the signal to jump in and you should be aiming the 20MA of the H4 charts.
NZDUSD trade setup for March 06, 2012
NZD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3