Here is an analysis of the EUR/NZD chart using some simple trend indicators on the higer time frames. This is the W1 time frame chart. Visual analysis shows that the EUR/NZD is in a longer term downtrend that might last many more weeks. Current pricing is about 1.6110. Traders can set an audible price alert below this price. When the alert hits check The Forex Heatmap® forex heatmap for a sell signal.
We see considerable pip potential below the alert price, down to as low as the 1.4300 area, which is 1800 pips of potential. This means that the risk to reward ratio would be 60 to 1 with an initial stop of 30 pips. This is a phenomenal risk to reward ratio for any forex trader to use. Most forex websites emphasize scalping with 1.5 to 1 or 2 to 1 money management ratio. This trend analysis was accomplished with multiple time frame analysis by individual currency, using using some simple forex trend indicators. The trend indicators you see are some 5/12 exponential moving averages. These moving averages are simple, but powerful when applied across individual currency groups.
EUR/NZD Chart, Trend Analysis