USDCAD - Expecting a Consolidation - Another Trendline Bounce
Hi Traders!
The market is in a Downtrend.
As always, let's begin with the daily Timeframe:
You can see a descending Wedge (with one bearish Fake out).
Consider the distance between the Trendlines: It is getting tighter and tighter.
Because the market has fallen very much and reached now an Area of neutrality, we expect a consilidation now.
Let's move on to the next Timeframe:
The price is now at the lower Trendline.
It is bouncing back from upwards it to reach the other side.
Because the market is in a Downtrend, we don't recommend to trade the Upmovement towards the upper Trendline.
We will trade the bearish Bounce from the Trendline.
Let's move to the Entry Timeframe:
Here we see an orange box.
We call it the "Area of Concentration".
We're here waiting for a Trend Reversal Pattern.
This could be the Engulfing Pattern, a Doji-Pattern, etc.
We recommend to trade the pair patiently, because it is a Longterm-Analysis.
Thanks and successful Trading :)!
The market is in a Downtrend.
As always, let's begin with the daily Timeframe:
You can see a descending Wedge (with one bearish Fake out).
Consider the distance between the Trendlines: It is getting tighter and tighter.
Because the market has fallen very much and reached now an Area of neutrality, we expect a consilidation now.
Let's move on to the next Timeframe:
The price is now at the lower Trendline.
It is bouncing back from upwards it to reach the other side.
Because the market is in a Downtrend, we don't recommend to trade the Upmovement towards the upper Trendline.
We will trade the bearish Bounce from the Trendline.
Let's move to the Entry Timeframe:
Here we see an orange box.
We call it the "Area of Concentration".
We're here waiting for a Trend Reversal Pattern.
This could be the Engulfing Pattern, a Doji-Pattern, etc.
We recommend to trade the pair patiently, because it is a Longterm-Analysis.
Thanks and successful Trading :)!
Note
Here is the RED BOX, but in Big:
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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.
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.