• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

ForexSchoolOnline.com

Learn to Trade Forex Online

  • Compare Brokers
    • Broker Type
      • Paypal Brokers
      • Swap-Free Brokers
      • Low Spread Brokers
      • ECN / STP Brokers
      • Market Maker Brokers
      • Non Dealing Desk Brokers
      • Low Minimum Deposit Brokers
    • Country
      • Brokers for Australia
      • Brokers for South Africa
      • Brokers for the UK
      • Brokers for the US
      • Brokers for Nigeria
    • Regulation
      • FCA Regulated Brokers
      • ASIC Regulated Brokers
      • FSCA Regulated Brokers
      • CFTC Regulated Brokers
    • Platform
      • MT4 Brokers
      • MT5 Forex Brokers
    • Strategies
      • Hedging Forex Brokers
      • Scalping Forex Brokers
      • Carry Trade Forex Brokers
      • Brokers for Indicators and EA’s
  • Start Here
    • Start Trading Guide
    • Beginner Trading Lessons
  • Free Forex Course
    • Public Login
    • Register
    • Password recovery
  • Lessons
    • Strategies
    • Videos
    • MT4 Guides
    • Money Management
  • Trade Setups
  • Tools
    • Correct Free Demo Charts
    • Forex Journal Download
    • Position Size Calculator
    • FULL List of Tools
    • Forex Demo Accounts
  • Price Action Guide
  • Free Course

NZDUSD Breaks Out With Huge 4hr Engulfling Bar | 23rd Jan 2015

Johnathon Fox
01/23/2015 | UPDATED ON: 08/05/2019

The NZDUSD has smashed out lower and through the tight daily range with a huge 4 hour Bearish Engulfing Bar (BEEB). The daily range that price had been contained within had seen price stalling and trading sideways for the previous few months before finally making a strong break lower inline with the overall trend lower.

As I discussed in the 21st Jan ~ NZDUSD Daily Forex Trade Setups Commentary when price is stuck in these ranges or consolidation areas it is a lot more likely to trade into traffic or trouble areas. When price on the other hand makes a breakout from a tight consolidation area and into space, it is more often than not going to have no trouble areas or support/resistance areas to contend with and this can make breakout moves from tight consolidation areas very explosive.

As we can see on the 4 hour chart below; price was breaking out of the daily consolidation area. Price formed the Bearish Engulfing Bar and exploded out of the consolidation area and into the space giving it room to run away from all the trouble and into space.

As regular readers of this blog will know; when price breaks out of an area such as this where price has been contained for an extended period of time, price will often make a really quick retracement back into the same level to make a re-test. This level can regularly be a super high probability level to look for a reversal setup known as a breakout and re-test trade, pending on what the price action does. Traders mark up this level on the daily chart and then can hunt setups on either daily on intraday time frames. You can read more about this strategy here;

Taking High Probability Trades Using the First Test Support/Resistance Strategy

 

NZDUSD Daily Chart

NZDUSD Daily price action chart

 

NZDUSD 4 Hour Chart

NZDUSD Technical Break out

 

Related Forex Trading Education

– Pin Bar Trading From Key Areas *Video*

Recommended Broker

  • Broker
  • Min Deposit
  • Benefits
  • Score
  • Visit Broker

$200

T&Cs Apply
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
5
Trade Now FreeBets Reviews
Reviews

About Johnathon Fox

Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world.

View all posts by Johnathon Fox →
Previous Post: « NZDUSD Forms 4hr Inside Bar at Bottom of Daily Range | 21 Jan 2015
Next Post: Is it Time to Hunt Trades on the Swiss Pairs Yet? | 27th Jan 2015 »

Reader Interactions

Leave a Reply Cancel reply

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

Primary Sidebar

Forex School Online

High Probability Price Action Trading

How to make, manage and take profit from trades in the markets

Start Learning (It's Free!)

Turn Your Trades into Winners!

The Price action course is the in-depth advanced training on assessing, making and managing high probability price action trades.

Sign up for Free!

Recommended Broker

  • Broker
  • Min Deposit
  • Benefits
  • Score
  • Visit Broker

$200

T&Cs Apply
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
5
Trade Now FreeBets Reviews
Reviews

Footer

Get Our FREE Course, Bonus Strategies & Indicators!
X
Join Us Now!

Your capital is at risk.

X

CORNERSTONE LESSONS

Forex Trading for Beginners

Price Action Trading

How to Trade Forex

Technical Analysis

Forex Charts

Forex Trading Strategies

Money Management 

Compare Brokers

Best Forex Brokers

Forex Demo Accounts

Best Forex Trading Platforms

Forex Apps

Swap Fee Accounts

MT4 Brokers

CATEGORIES

Forex Videos

Trading Lessons

Weekly Trade Ideas

Start Here Guide

ForexSchoolOnline.com helps individual traders learn how to trade the Forex market

WARNING: The content on this site should not be considered investment advice and we are not authorised to provide investment advice. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision. The information on this website is general in nature so you must consider the information in light of your objectives, financial situation and needs.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary. This website is free for you to use but we may receive a commission from the companies we feature on this site.

We Introduce people to the world of currency trading. and provide educational content to help them learn how to become profitable traders. we're also a community of traders that support each other on our daily trading journey

Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

Copyright © Forex School Online Sitemap  - Privacy Policy - Disclaimers & Terms of Use - CONTACT US