USDCAD: H4 Time frame
Loonie is in the downtrend for a quite some time now, scaling down from the higher TF’s such as M-W and Daily we can clearly see that price is moving to the downside. Now the last thing to do after determining the bias is to create a setup on the lower TF’s such as H4-H1 and 30m for entry points.
In the picture above is a possible short opportunity setup. Price clearly rejected the bottom zone at 1.2600 – 1.2610 and is now moving up towards us. Remember, you don’t want to chase the price, let the price come to you and remain patient.
We will start to look for a sell at 1.2690 – 1.2700 regions. Before that even happens, we need to see a rejection and as well exhaustion at that certain level as a confluence. If the price will give us enough evidence to shift momentum down, we will take a short trade, if not, then all we need to do is to wait for a breakout of 1.2700 and a test to go into longs.
As a trader, you need to be very adaptive to the current market situation and be able to change the short term bias in seconds.
If you decide to trade this setup, use the proper risk management and manage the trade according to your own rules and plan.
Trading forex can be a high risk, everything you use is on your own and we won’t take credits for either profit or loss.