CADJPY SHORT -- A possible Big Canadian Short in coming Days
So let's get to it.
At the end of every day, week and month i look at each currency pair to see if they're at a notable point of support or resistance. To identify a notable point, it's as easy as seeing if the current price action is at the point where historically, price has moved significantly counter to the current trend. It's that simple.
Which brings me onto the Canadian Dollar.
Your honor, may i present exhibit A.
Exhibit A - Line 1
Line 1 is a downward trending line and as you can see from the chart, each time the price action has hit the line, it has moved significantly counter to the current trend.
But trendlines are made to be broken, so is this enough to place a SHORT trade? In and of itself, definitely not. So what about Exhibit B:
Exhibit B - Line 2
Line 2 is a horizontal line of resistance, and historically, a lot of price action has occurred at this point, and more specifically, a lot of rejection has occurred from this point.
So we're starting to create a slight bias towards shorting than longing here. But is there a way to give us a bit more confidence that it might head down? Well, actually yes.
Currency pairs have an inverse relationship, typically, if you see AUD/CAD, GBP/CAD and EUR/CAD all rising, you'll likely see CAD/*** falling. To elaborate on my point, we have CAD/JPY at resistance, do we have another currency as CAD as the secondary pair, at support?
Exhibit 3 - EURCAD - SUPPORT
I can't display links within my charts currently, so i've linked the EURCAD - Possible LONG Entry to the bottom of this post, in related ideas, which shows EURCAD at a strong level of support.
So that's how i find my trades. I look to see if the price action is at an area of interest (historically, price has moved significantly counter to the current trend) and then i look to see if there is the opposite exists when my original currency is the secondary pair.
Personally, it's too early for me to place CADJPY as a short, or indeed, EURCAD as as long, but i will be keeping close attention on it, especially towards the later part of the week.
Thank you all again for you time,
If you have any questions, i'm happy to help. Always
For_The_Many
At the end of every day, week and month i look at each currency pair to see if they're at a notable point of support or resistance. To identify a notable point, it's as easy as seeing if the current price action is at the point where historically, price has moved significantly counter to the current trend. It's that simple.
Which brings me onto the Canadian Dollar.
Your honor, may i present exhibit A.
Exhibit A - Line 1
Line 1 is a downward trending line and as you can see from the chart, each time the price action has hit the line, it has moved significantly counter to the current trend.
But trendlines are made to be broken, so is this enough to place a SHORT trade? In and of itself, definitely not. So what about Exhibit B:
Exhibit B - Line 2
Line 2 is a horizontal line of resistance, and historically, a lot of price action has occurred at this point, and more specifically, a lot of rejection has occurred from this point.
So we're starting to create a slight bias towards shorting than longing here. But is there a way to give us a bit more confidence that it might head down? Well, actually yes.
Currency pairs have an inverse relationship, typically, if you see AUD/CAD, GBP/CAD and EUR/CAD all rising, you'll likely see CAD/*** falling. To elaborate on my point, we have CAD/JPY at resistance, do we have another currency as CAD as the secondary pair, at support?
Exhibit 3 - EURCAD - SUPPORT
I can't display links within my charts currently, so i've linked the EURCAD - Possible LONG Entry to the bottom of this post, in related ideas, which shows EURCAD at a strong level of support.
So that's how i find my trades. I look to see if the price action is at an area of interest (historically, price has moved significantly counter to the current trend) and then i look to see if there is the opposite exists when my original currency is the secondary pair.
Personally, it's too early for me to place CADJPY as a short, or indeed, EURCAD as as long, but i will be keeping close attention on it, especially towards the later part of the week.
Thank you all again for you time,
If you have any questions, i'm happy to help. Always
For_The_Many
