Technical Analysis:
Resistance Levels: Identify recent resistance areas where price has struggled to break through. For instance, if GBP/CAD has recently failed to break above a certain level (e.g., 1.7000), this could act as a strong resistance zone where a pullback or short entry is likely.
Trend Indicators:
Moving Averages: Look for bearish signals such as the price crossing below a key moving average (50 or 200 period). A death cross (50 MA crossing below the 200 MA) could indicate a shift towards a bearish trend.
RSI (Relative Strength Index): If RSI is in overbought territory (above 70) and starts to turn down, it might signal an impending reversal.
MACD: If the MACD line crosses below the signal line, that could also indicate bearish momentum.
Price Action: Watch for reversal patterns like bearish engulfing, shooting star, or evening star formations near resistance levels. These can provide confirmation for a short trade.
Resistance Levels: Identify recent resistance areas where price has struggled to break through. For instance, if GBP/CAD has recently failed to break above a certain level (e.g., 1.7000), this could act as a strong resistance zone where a pullback or short entry is likely.
Trend Indicators:
Moving Averages: Look for bearish signals such as the price crossing below a key moving average (50 or 200 period). A death cross (50 MA crossing below the 200 MA) could indicate a shift towards a bearish trend.
RSI (Relative Strength Index): If RSI is in overbought territory (above 70) and starts to turn down, it might signal an impending reversal.
MACD: If the MACD line crosses below the signal line, that could also indicate bearish momentum.
Price Action: Watch for reversal patterns like bearish engulfing, shooting star, or evening star formations near resistance levels. These can provide confirmation for a short trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.