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Post of the Day: NZD/USD

Wednesday, 03 December 2008 09:21:28 GMT

Written by Richard Krivo, Power Course Instructor

Student’s Question:

Clear downtrend with downwards sloping support and resistance trend lines.

chart 12 02 08

Power Course Instructor’s Response:

Yes. This is a fine example of a descending trading channel. Since the pair in a downtrend on this Daily chart, we would only be looking for opportunities to sell the pair. Each time price action move up to trend line resistance, a trader could sell the pair into the downtrend...see the chart below for a visual.

Nice work...

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