you know I have been bullish about the NZD/USD all the way since mid of April. Here are my previous posts about NZD/USD which you can checkout:
I have indicated very clearly almost 2 months ago where the NZD/USD could move to. How is that possible?
Of course because I study the effects on the market of Program Trading, a class of Algos trading that is very active on the market and moves price on the largest forex pairs and instruments.
On June 4, I wrote in relation to NZD/USD: “Congrats to those who traded the market short after the sequence of daily moves long was interrupted as of May 23. The market got into that 0.8415 area as anticipated. A first confirmation of support at this area will come if price is capable of climbing above the 0.8478 level.”
That 0.8478 entry long level, with a stop below lows, was a great entry.
Look at the picture below of what the market did since then, and look at where we are headed:
“NZD/USD responding to next measured move and strongly moving higher“, June 6 2014
As you can see the first target of this new move is 0.8950, and that target has been confirmed already.
Now look at what I mentioned on my April 18th post on NZD/USD, you can reference the chart below that was in included in that post:
“NZD/USD hit a target at 0.8740 known two months in advance” – April 18th 2014
“Once and if the market will get in area E (see weekly chart above), I will be using again the FibStalking technique to test this area. If this area tests successfully the entry will have a stop below the E area at 0.8318, as mentioned already.
In that case I will also start looking at my next (Program Trading) target at 0.8908 (area F). Here is where I anticipate Program Trading and professional traders are going to push price to take profits. The reason why I believe , after this correction, a continuation higher is more probable than a continuation lower is that if we look at the weekly timeframe we can see that there is another larger area of support at the 0.77 area (this is area A).”
So I hope you realize the power of looking at the markets putting on the Program Trading “goggles”.
If you want to learn more about this method, join my…
Upcoming FXStreet.com Monthly Webinar on June 19, 13GMT
This is going to be a packed 3-hour event with in 2 separate parts:
Part I – Webinar titled: “Thinking and Trading Like Modern Algos” (free event)
Summary: In the first part of our Monthly Webinar, we will look at how forex market price moves and compare to how the average trader thinks the market moves. We will then turn focus on Program Trading, a major class of algos that strongly influences modern markets, and how we can model it. Finally we investigate the stages of a trader, what is trading all about and choosing consistency and risk acceptance.
Part II – Webinar titled: “How ‘secretive’ Program Trading incorporates Market Psychology” (premium event)
Summary: In the second part of the Monthly Webinar, we review a simple, but very effective setup CME floor traders brought into computer-based trading in the late 80s. Then we will focus on the “invisible” Program Trading, that silently adapted to mimic market psychology and I will show jaw dropping long-term charts that show how the rules used by Program Trading could be applied in the last 110 years. Those same rules can put you in the elite 5% of regularly consistent winners.
Please register here you can watch it here.
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Thank you for following my work.
See you next Thursday.