Let us analyze the forex currency pair NZDJPY today. I’m using my favorite technical indicators – Doda Donchian, Doda Bollinger Bands and Ichimoku.
The time frame used is H4.
Although Doda-Donchian gave Buy signal @78.870 but at that time, it was trading below Ichimoku cloud.
That means in a Bearish territory.
Also, the currency pair was below Doda Bollinger Bands.
That means the trading signal given by Doda-Donchian was the False signal.
But after it crossed Ichimoku cloud and enters the bullish territory and also above Doda-Bollinger Bands, there is no point in waiting here.
So, take a Buy call on this currency pair @79.686 for an immediate target of 80.018, which is its Resistance 2.
Other Support and Resistance areas are:
Support and Stop loss @79.518
Resistance @80.018 and @80.554
I hope you understand my trading strategy with this article. If you’ve any doubts, please share in the comments section below.