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Long

EURCAD - Market Re-Draws - Long Opportunities Ahead

FX:EURCAD   Euro Fx/Canadian Dollar
Greetings Fellow Traders,

As Traders it is our responsibility to understand what the Market's current intentions are to give us the best possible chance of success on our trade decisions. The market is constantly evolving and changing it's course of action and it's important that we stay flexible and adapt to any of those changes that occur.

***While it is Thanksgiving this week in the United States, this does not mean that the market will not move, plus there are 3 very strong days of trading prior to this Holiday. I will not alter my analysis for it.***

Not too long ago I brought attention to not one, but two Descending Wedge Patterns that formed on the 4 Hour Chart for EURCAD             . Typically these patterns break out in a Bullish Manner and the Measured Objective is where the wedge started, in this case near 1.4650. On the updated 4 hour chart you can see that the market had a partial bullish breakout for the 2nd Wedge that was created but ultimately it was fizzled out. We've gone from trading in a Descending Wedge to a Descending Channel. Note how the market stayed true to the lower support of the former wedges (now our channel support).

While we have definitely started trading in a Channel, due to our original analyses with the Descending Wedges, I will still keep my Bullish Bias - however we cannot ignore what lies below us and that is a Triple Bottom Horizontal support at the 1.4150 level. Should the market confirm on the 4 hour candle close this level could very well be used for short term sells.

This is just a sneak peak for an upcoming trade opportunity based on what the market actually does. As stated above I remain with a bullish bias but will wait for a 4 hour close outside of the channel and then look for a retest of that channel to act as a new support. Until then, remember we ARE in a Descending Channel.

Please remember to do your own analysis before entering a trade. If you like what you see here feel free to comment, follow, "like" or ask questions. If there is a specific chart you would like my input on, simply send me a PM-0.30% .

For those that it is relevant to, Happy Thanksgiving!
Not sure if you have done any study into EW, but it was really what helped me but the structure into context when trying to decide when you are actually in a valid ending diagonal, what you call a wedge, or if it is still in an impulsive move down.
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often times the price will look like a wedge, but does not follow the rules of EW it will fail, like the structure that u called the "old wedge", in the context of EW is not a valid ending diagonal, but is just a standard 1-5 impulsive move down not a valid wedge.
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Synapse stocktrader15
a year ago
Thanks for the tip, appreciate it, I'll have to look closely at wave counts versus price action I see on a chart.
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stocktrader15 PRO Synapse
a year ago
ok no problem, keep it up!
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dynoinc
a year ago
On the daily chart the last few bars are finding support on the 200 sma. there is a englufing bar. two strong indications of a reverse trend. these are also more reasons why i am going long.
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Synapse dynoinc
a year ago
Thanks for the insight and input Dynoinc. I agree with the long direction but will wait for confirmation of that trend line to break :)
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