USDCAD mid term short opportunity
Updated
It seems that the buying force has been around for the last few days and coming to a recent strong supply area as highlighted on chart. A very strong rejection (red candles) was shown around the supply area, this means a lot of selling orders are yet to be filled.
Aggressive traders may place limit order around this area. Alternatively you may wait for double top (No higher high), V shape confirmation and sell, both strategies has pros and con, the limit order method will give you Bigger Risk Reward Ratio (RR), and the wait until confirmation will be safer but less RR ratio.
Whenever retail traders feel its time for the buying move, it is a confirmation for sell. The logic apply both sides. In order for you to make money, retail traders has to loss money.
regards,
Steven
Aggressive traders may place limit order around this area. Alternatively you may wait for double top (No higher high), V shape confirmation and sell, both strategies has pros and con, the limit order method will give you Bigger Risk Reward Ratio (RR), and the wait until confirmation will be safer but less RR ratio.
Whenever retail traders feel its time for the buying move, it is a confirmation for sell. The logic apply both sides. In order for you to make money, retail traders has to loss money.
regards,
Steven
Note
this trade played out as expected, however took way longer time
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.