Disliked{quote} In myfxbook NZDUSD is not below 25 as the bubbles indicator says. ? Is longs increasing in relative sentiment indi yo call short? So you would have sold if not for today being Friday? I wish they would allow me click like in your post that's understood.Ignored
If you look at the chart here, that spike candle was during the 1st hour after NY close. (Futures markets are closed during that time also)
Typically this is the absolute worst time to trade or be in trades because spreads are 10x or more during this time and your broker can easily stop hunt you doing this period in the market. It actually happened to me with UJ a few days ago and was a reminder why NOT to have trades on during that time unless you have a really wide stop.
I usually want to see shifts in Market Structure OR Sentiment on Monday or Tuesday. Shifting like this during the 1 Hour window after NYC close is not a good sign. So had you been in the trade or thought about getting into it... you'd want to look for a graceful exit (like the red rectangle area). This happens over and over on the charts and it's the best way to exit instead of panic selling as this is normal PA behavior. Price typically pulls back at least 1 time to where trapped traders were. If not, it will in the future for those with deep enough pockets to hold on for the ride.
That being said, if you were the trapped trader, after seeing the clear MS break in the hours that followed, you'd look for that graceful exit and reverse your trade in the same area. This is a professional way of trading once you understand the key areas to get in and get out - and know when your idea is wrong and where you could flip and reverse if you wanted to ride the wave in the proper direction. NU looks to be heading to the LG fill at the red line. But again, retail isn't really strong on either side of this trade so they aren't a liquidity provider. I personally wouldn't be interested in it.
Anyway, NU would have just been a MS trade and not a Sentiment combo if I wanted to trade it. The best combo trades are pairs where sentiment goes from extremes and shifts from those extremes to opposite extremes regularly.