EURCAD Short based on Price Action and Timeframe agreement
This is a short based on timeframe correlation and price action analysis.
* DAILY CHART*
- signs of lower lows and lower highs.
- The high of the previous day's candle also interacted with a strong area of previous resistance.
- That level as interacts with the upper edge of the linear regression channel.
- These are signs of the price potentially being overbought and therefore moving lower.
* H4 CHART*
- same lower lows and lower as daily. However there are clearer signs of reversal candles off of the recent resistance
* Hourly CHART*
- the only timeframe that wasn't congruent at the time of recording. There is a upward linear regression channel and the price has failed to make lower lows
- a conservative trade setup would be waiting for that support to get broken and then waiting for the price to pull back and show signs of reversal
* Lower timeframe CHARTS*
- all showing signs of bearishness with lower lows and lower highs, as well as signs of being overbought in the linear regression channels
* Trade Setup*
- For a more aggressive trade could enter now. A more conservative trade is to wait for the support to be broken on the hourly as discussed above.
- short with a stoploss above the high of Friday's candle
- initial profit of around 1:1 reward:risk. Potential beyond that to the lower edge of the linear regression channel
* DAILY CHART*
- signs of lower lows and lower highs.
- The high of the previous day's candle also interacted with a strong area of previous resistance.
- That level as interacts with the upper edge of the linear regression channel.
- These are signs of the price potentially being overbought and therefore moving lower.
* H4 CHART*
- same lower lows and lower as daily. However there are clearer signs of reversal candles off of the recent resistance
* Hourly CHART*
- the only timeframe that wasn't congruent at the time of recording. There is a upward linear regression channel and the price has failed to make lower lows
- a conservative trade setup would be waiting for that support to get broken and then waiting for the price to pull back and show signs of reversal
* Lower timeframe CHARTS*
- all showing signs of bearishness with lower lows and lower highs, as well as signs of being overbought in the linear regression channels
* Trade Setup*
- For a more aggressive trade could enter now. A more conservative trade is to wait for the support to be broken on the hourly as discussed above.
- short with a stoploss above the high of Friday's candle
- initial profit of around 1:1 reward:risk. Potential beyond that to the lower edge of the linear regression channel
Trade closed: stop reached:
Aggressive entry would have got stopped out. Conservative entry would not have been triggered