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GBPNZD : Making sense of Multiple Timeframe

Big Picture Look

D1 chart of GBPNZD shows both Bullish and Bearish Expansions

D1 chart of GBPNZD shows both Bullish and Bearish Expansions

  • A Bearish expansion can be seen on the D1 charts, this also fit the criteria of a BM as price had expanded below 3 previous D1 boxes low.
  • Subsequently in the next month, a Bullish expansion is seen in the H4 time frame (lower timeframe from D1).
  • This does not mean a conflict of information. Instead, with multiple time frames, in this example D1 & H4, you can see it as for price to move further down, it would need to retrace first.
1234 Pattern seen on the D1 charts

1234 Pattern seen on the D1 charts

  • On the D1 charts, you can also see that with the H4 bullish expansion, price has reached to the point where it can test a previous resistance of 2 D1 boxes low (2 months low)
  • Price also encountered resistance via the top of the equidistant channel and a Fib-R level based on the down flow.

In the lower time frame (H4)

WRMBs define a range in GBPNZD H4 charts

WRMBs define a range in GBPNZD H4 charts

  • In H4, you can see that price seems to be trapped within support and resistance clearly defined via the two recent WRMBs.
  • Currently price is closer to the support. There are 2 possible outcomes.
    • Price is supported again, then price will likely move towards the resistance to test it. Look for a 1234 for possible entry.
    • If price can clear below the support zone, wait for it to retrace and retest the zone as resistance in a form of a 1234 pattern.

There was another post written recently by Tionghum, Combine multiple time frames in one chart for trading many markets, which also help to clear some doubt on multiple time frame analysis.

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One thought on “GBPNZD : Making sense of Multiple Timeframe”

  1. Sang Keng Alan Leong says:

    Thanks Jerome! Will be keeping a close look on this pair.

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