Chicago-Greg replies to: NZD/USD

Disliked

{quote} what is “nodal analysis”?

Nodal: denoting a point in a network or diagram at which lines or pathways intersect or branch

In the technical trading sense, they are the intersections of fractal lines. Some fractal lines carry more weight than others based on some simple rules. Nodes that are defined by more powerful fractal lines are by definition also more powerful. Nodes exhibit magnetic properties.

Price rarely travels directly thru a node. It can, but requires strong momentum to do so. Price also requires strong momentum when passing between two closely positioned nodes.

In my trade set up, there were two crimson nodes above price acting as a resistance “mesh” if you will. Notice the position of the second more powerful node (bold crimson lines). For price to move up between those crimson nodes would have required a very strong surge in momentum. However, there was no calendar events to supply any extra momentum and just no real fundamental reason for NU to surge upwards 30-40 pips on a lazy Sunday night into the weeks first London session. Instead, as projected, price took the path of least resistance and headed down to the nodal support mesh (green node).

The updated look and successful first trade of the week.

Attached Image (click to enlarge)

Click to Enlarge Name: nuwinner.png Size: 103 KB

“Pride always comes before destruction….” -Proverbs 16:18

Leave a Reply

Your email address will not be published. Required fields are marked *