FX:USDCAD   U.S. Dollar / Canadian Dollar
Fresh supply zone ahead, possibile retracement, short opportuinity.

Stuff to remember:

— First look for significant move, then follow it to its origins where you might find a suitable level to evaluate further

— Make sure the initial move is significant on the same timeframe as the one you use for viewing your candidate level most clearly

— Check the distance that price traveled before the trend ended, longer distances mean larger initial imbalances and improved probabilities in the future

— The strong initial move can contain a few small retracements but not so many that make this move slow and weak

— Avoid opposing levels on the same and immediately higher timeframes, prefer to have a clear road ahead for your trade to run

— Make sure your level is placed correctly (low for Demand, high for Supply) in relation to the big picture's important tops and bottoms

— Trading the first return of price to a valid "fresh" level carries the highest probabilities due to the larger imbalance

— A valid level is considered "fresh" if price has not returned to it since its creation. It has nothing to do with how old the level is

Comments

Is there another supply zone or is this the time to expect pull back and possible short trade?
Reply
Hi, Thanks. It's always good ? Or canceled ?
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@Ron77, I think yes for this time
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Lovely!
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Always love your analysis, thanks Tradewonk!
Reply
@bkgn, Thank you! :-)
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Do you focus purely on TA or do you also consider FA, Tradewonk?
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@pamey, What do you mean?
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