Second piece of the day is about the NXT, which for the last time was mentioned on the 18th of July. Back in that day, the price was one step from the major buy signal”
“Currently, the price broke the down trendline (orange) and is trying to create a double bottom formation. That would be a nice buy signal but for that, we need to see the breakout of the yellow area first. We are testing it right now but Price Action rules say that we need to see the price closing a day above that level, after this, you will get a confirmation and you will be able to open a long position. „
Another important lesson showing the awesomeness of the price action. In this style of trading, you do not predict what will happen but you are waiting for a certain action to happen and react based on that. NXT had a chance for a buy signal but failed to break the orange area, which was a strong signal to go short. You know, failed opportunity is an opportunity to go to the other side.
Currently we are on the lows from the middle of July and we have bigger chances for a further drop. New sell signal will be triggered, once the price will break the green support. As for now, this scenario is very probable.