NZDUSD 4 HR CHART

13 jun 2023

The price momentum switches from an aggressive selling to an aggressive buying state. It is nearly impossible to predict V-bottoms, but most traders will wait for price to break the neckline of the pattern and then enter a long position once price retests the neckline. A conservative way to trade the V-bottom would be to wait for a break and close above the neckline and to attempt a long position once price pulls back to the neckline and gets rejected. An ideal target can typically be set above the neckline, equal to the distance measured from the low of the pattern to the neckline high.
But in this chart there is a formation of channel along V bottom shape, the price is moving towards the upper side in zig-zag way to touch the higher high range of the channel.