The NZDUSD has now moved lower after forming a bearish engulfing bar (BEEB) on the 8hr chart. The BEEB formed up at a solid swing high and was rejecting the logical recent resistance zone that had been critical in recent times for this market. This A+ price action setup was also with the recent strong trend.
Once price broke the low of this BEEB price did not just move straight lower. Price had two more attempts at moving through resistance level before finally moving lower and the setup coming off.
This setup was discussed live by Johnathon in the members forum in live time before it played out. A shout out also goes out to member Chasi who also posted about this setup in the live price action thread.
At Forex School Online we concentrate on trading on the higher time frames above the 4hr. The reason for this is the higher time frames have less noise than the lower time frames and the price action have less false signals. Another good chart for traders to add to their trading watch lists is the 8hr. To read about how you can set up 8hr charts or make any time frame you want on your MT4 platform read here: Changing Your MT4 TimeFrame
NZDUSD 8HR CHART | 23 MAY 2013
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