From TradingView · · 1m 10s
EUR/NZD short trade setup with channel resistance
A technical trading plan for shorting the euro against the New Zealand dollar using trendline resistance and lower-timeframe confirmation.
In brief
A technical trading plan for shorting the euro against the New Zealand dollar using trendline resistance and lower-timeframe confirmation. Wait for bearish confirmation on lower timeframes before shorting EUR/NZD at channel resistance, rather than entering immediately on touch. Originally reported by TradingView.
Daily chart shows resistance zone
Price has reached the upper channel and descending trendline resistance on the daily timeframe. Don't enter a short position immediately when price touches this level.
Wait for lower timeframe signals
After price touches the upper channel, look for either bearish divergence on 1-hour or 15-minute charts, or a clear bearish reversal pattern on those timeframes.
Entry requires candle confirmation
Once divergence or reversal appears, wait for a bearish candle close or a break of the lower-timeframe swing low. Execute the short on confirmation or retest.
Stop loss placement strategy
Place your stop loss above the channel resistance or the recent swing high to protect against false breakouts.
Patience prevents premature entries
The plan emphasizes waiting for multiple confirmations rather than acting on the first touch of resistance. This reduces the risk of getting stopped out early.
“Do not short immediately on touch.”
The bottom line
Wait for bearish confirmation on lower timeframes before shorting EUR/NZD at channel resistance, rather than entering immediately on touch.
