NZD/USD trading idea using stochastic and moving average

By QuintoTrader | Quinto Trader | 11 Jul 2019


Stochastic  is a crossover oscillator indicator while moving average is a trend indicator. Today being Thursday 11th the July of 2019, the NZD/USD market has been in a bullish trend most of the time.NZD/USD market has managed to rise above 0.6687. The question is will this bullish trend continue or will the NZD/USD market reverse and become a bearish trend. This is indicated from the candlesticks chart below;   NZDUSD.png   From the candlesticks chart above, there is point A which represents the crossover between stochastic and signal line and point B located along the moving average. Although the NZD/USD market has been in a bullish trend most of the time and we don't know whether the NZD/USD market will continue to be in this bullish condition or it will reverse and become a bearish trend, we can use the concept of Stochastic and moving average to predict the direction of the NZD/USD market for the remaining time. Using the concept of Stochastic, the market is normally considered to be overbought if the stochastic crosses below the signal line at above 80 and oversold if the Stochastic crosses above the signal line at below 20. At point A, the stochastic has crossed below the signal line at above 80  thus an indication of an overbought NZD/USD market condition.Although the NZD/USD market has been bullish today and managed to rise above 0.6687, we can decide to follow the concept of Stochastic and open a sell position because crossover at above 80, that is an indication of an overbought market condition thus the NZD/USD market will reverse and start a downwards trend. Using the concept of moving average ,the market is considered to experience a reversal trend if the price rises above the highest high of a moving average or falls below the lowest low of a moving average.At point B, the price has risen above the highest high of a moving average thus a downward reversal trend has started to take place. Although today the NZD/USD market has been in a bullish trend and managed to rise above 0.6687, We can decide to follow the concept of moving average because the price has risen above the highest high of a moving average and open a sell position. Here is how our trading idea for NZD/USD  sell market looks like today;   SELL 0.6687          T/P 0.6637   S/L  0.6737   Make sure to apply risk management while opening your position because this is not an investment advice but just a trading idea          

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QuintoTrader
QuintoTrader

Trader, Blockchain Technologist and Contentpreneur. Also founder and CEO @ Quinto Trader


Quinto Trader
Quinto Trader

Teacher forex school provides individual with training regarding to forex trading and cryptocurrency trading. We also share trading ideas online for both crypto and forex market

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