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Trendpullback

USDCAD - Wait/Trade the Pullback & Trade Trend-ContinuationHi Traders! The market is in an overall Downtrend. We'll start the Multiple Timeframe Analyis with the Weekly. Here is it: As you can see, we firstly had an Uptrend. It made a Trending Move, then it consolidated in the wedge before moving higher. After that, it came back all the way down to the Wedge Level. Recently, it even broke this level too, which results a cancellation of the Up-Trend. Let's move on to the Daily-TF: Here you can see how the market broke the Level. It moved in a descending Triangle, then it made lower Lows and eventually broke out. Now we can consider the Weekly Trendline. We should wait for the Pullback, because the pair often comes back to the Trendline. In addition, by trading near this important structure, we can set our SL above the "safe" Weekly Trendline. Let us move on further to the H4-TF: After the bearish Breakout of the Structure Level, we can identify this important descending Parallel Channel. We expect a Pullback to the Level 1.28500 or - in case of a Range - until the market reaches the Trendline. You can either trade or wait for the Pullback, but this idea is only on trading the Trend Continuation after the Pullback. Lastly, here is the H1-Timeframe: The most important thing is now to wait (when you want to trade the Continuation). We have to observe the situation to evaluate the Price Action. It is also possible, that the market moves down lower without a Pullback, but the likelihood isn't high. We recommend to trade in the direction of the Trend. Thanks and successful Trading :)!
by swissmoneymakers
2
GBPUSD - Trend Pullback Trading - Channel Top & Weekly TrendlineHi Traders! The market is making higher highs and higher lows. However, it is still in an overall Downtrend. Before we start, here is an overview for the Daily Timeframe: As you can see the market is in a light ascending Parallel Channel. In addition it is soon at the weekly Trendline. That means that we should prepare for another Upmovement, before we sell it at the highest Price. Now we switch to the lower H4-Timeframe. The market is making higher highs and higher lows. That means: It is willing to pay a more and more expensive prices than it did before. Now you might be thinking: We're here trading against the Trend; why should I follow this idea? This thought is absolutely legitimate. But look at it in this way: Professional Traders know the overall structure and behavior of the market. If no Pro-Trader would be selling in an Uptrend, from where would the retracements come frome than? The target is at the 61.8% Retracement of the Upmovement, because we know it is making higher lows too. The SL is far away from the weekly Trendline. We recommend to trade the Reversal after the higher High (only if there's one). Thanks and successful Trading :)!
by swissmoneymakers