USDCAD POTENTIAL SHORT OPPORTUNITY (1H AND 4h CHARTS)
USDCAD POTENTIAL SHORT OPPORTUNITY
This setup is going to be similar to the GBPCAD setup that was posted this week as well. If you look at this pair you can see that recently the market had a very dominant seller move to the downside. The biggest tell if the selloff is legit or not is going to be the RE-TEST. The re-test is a huge tell sign of whether or not that move was legit or not. As traders we must trade high probable setups so that our potential of winning is greater than of losing. This is how we will become consistent over time and it takes strong discipline to do so. Let's take a look at this USDCAD setup.
4H Chart:
* on this timeframe we can see that the market had come to a high point and was followed by a very strong seller push to the downside
*you only want to sell the market at high point and sell at low points. This may sound very obvious for most people but that's not the problem. The problem is that most people do not apply it to their trading
*look at this timeframe for a weak re-test by the buyers to confirm the seller is in control
1H Chart:
*use this timeframe to watch the pullback on a more specific level
*use this timeframe also to watch and see if seller interest comes back in on the re-test (if it doesn't we wont be looking to trade this currency pair)
*make sure to have good risk/reward based on this timeframe
MAKE SURE TO ALWAYS IMPLEMENT PROPER RISK. NO SETUP IS A GUARANTEE THAT IT WILL GO THAT WAY. WE ARE TRADING BASED ON PROBABILITY AND YOU SHOULD ALWAYS USE PROPER RISK MANAGEMENT.
PLEASE LIKE AND FOLLOW MY PAGE FOR MORE PROFITABLE TRADE SETUPS. CHEERS!
This setup is going to be similar to the GBPCAD setup that was posted this week as well. If you look at this pair you can see that recently the market had a very dominant seller move to the downside. The biggest tell if the selloff is legit or not is going to be the RE-TEST. The re-test is a huge tell sign of whether or not that move was legit or not. As traders we must trade high probable setups so that our potential of winning is greater than of losing. This is how we will become consistent over time and it takes strong discipline to do so. Let's take a look at this USDCAD setup.
4H Chart:
* on this timeframe we can see that the market had come to a high point and was followed by a very strong seller push to the downside
*you only want to sell the market at high point and sell at low points. This may sound very obvious for most people but that's not the problem. The problem is that most people do not apply it to their trading
*look at this timeframe for a weak re-test by the buyers to confirm the seller is in control
1H Chart:
*use this timeframe to watch the pullback on a more specific level
*use this timeframe also to watch and see if seller interest comes back in on the re-test (if it doesn't we wont be looking to trade this currency pair)
*make sure to have good risk/reward based on this timeframe
MAKE SURE TO ALWAYS IMPLEMENT PROPER RISK. NO SETUP IS A GUARANTEE THAT IT WILL GO THAT WAY. WE ARE TRADING BASED ON PROBABILITY AND YOU SHOULD ALWAYS USE PROPER RISK MANAGEMENT.
PLEASE LIKE AND FOLLOW MY PAGE FOR MORE PROFITABLE TRADE SETUPS. CHEERS!
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