If we close the candle as a doji, then more likely we'll be pulling back (red arrow) to test old support, new resistance than not.
Details on chart. Mind the Earnings.
=\ Not yet triggered. It needs to come back up to trigger the buy. If this one doesn't work, follow the H1 plan.
Twitter doesn't let me tweet earlier because of "internal error" so here's my plan for $EURCAD, probably no trade until next week, unless not.
Plan ahead will help decrease the chances of getting burnt
My plan. Step 1, analysis on D1. Only going to take trades if the price follows my plan.
I still believe something's happening, so let's plan ahead.. :) The upper orange circle: If the market decides to continue its sideways move which apparently it's in love with for the last few months, then I'd expect it to make a final decision in September this year. Eventually it's gotta move. If the market decides to come down, then my first buying...
On M5 the price was supposed to be a bit more volatile, so if saw a nice break out candle but the momentum does not continue... better watch for it.
details on chart. Location+pattern+timing = perfect!
buy the bounce. Get out before Earnings... if we are still in the trade.
Two reasons why it might not be a good idea to be buying over that doji: 1. see text bubble on chart 2. there was no cluster... (hence it wasn't even on my plan! bleh..) The next pullback was at a better location, but it also did not form a cluster that I was looking for (M5).
Step #2 , make sure your cluster is a sideways cluster. IF it's like that double/triple bottom on the left, THEN drill down further until you can find a sideways cluster... Otherwise simply no trade.
just buying the bounce. 6/16 update: If stopped out, and the price makes another bounce on temp support, buy again. 6/26 update: It just proved the power of a rounded top!
I added a new strategy into my trading plan, and I tested it on 3 currency pairs tonight (8am EST) USDCAD is one of them. This is a 3 step trade setup: 1. on Daily chart, determine direction to trade. Either bull, bear, or bracket trades. (bracket means to decide that on smaller timeframe, I personally don't take bracket trade, I always pick a direction.) 2....
Will see how it plays out. worst case scenario = -2R