Kumowizard

Momentum, divergence, local top? Trade the 4H time frame!

FX:EURCAD   Euro Fx/Canadian Dollar
120 2 8
Daily Ichimoku is bullish and also Heikin-Ashi provided a smooth nice trend up.
We don't have a sell signal yet, but

- Daily is reaching resistance zone
- haDelta and DMO already warns about possibility of losing momentum within few days
- 4H is bullish , but haDelta, DMO and EWO all started to build some negative divergence.

What we have to look for is if price makes a higher high above 1,4900 on close! If not, then bulls should exit all longs and we can start to watch for a swing short entry.
For now just reduce longs if you have.

CaliforniaTrader
3 months ago
Cross is very close or at resistance. Also overbought short term. But if bullish on higher time frame market will often exceed previous top before beginning correction.
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Kumowizard PRO CaliforniaTrader
3 months ago
That's why I only opened half unit short. Smaller risk, but works nicely so far.
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