😇7 Dimension Analysis - Bullish Setup on GBP/CAD
Analysis Time Frame: Daily
1: Price Structure:
The market is currently exhibiting a bullish price structure, characterized by an initial Behavior of BoS (Breakout of Support). The move is impulsive, and the inducement is completed with liquidity swept internally. This is the 1st pullback in the bullish move, and the extreme order block (OB) remains unmitigated. Strong bullish momentum is evident around the demand area.
2: Patterns:
🟢TREND LINES:
A horizontal support line is observed, acting as a key level of support.
🟢CHART PATTERNS:
A double top pattern with an impulsive breakout and heavy volume is in place.
A rectangle pattern has also broken out, with the previous resistance now becoming support.
A V-shaped swing indicates a rapid recovery.
🟢CANDLE PATTERNS:
A key reversal pattern has formed, signaling a potential trend reversal.
A record session count of 4 candles is observed, indicating strong bullish momentum.
A change in guard pattern has appeared.
Momentum has failed to sustain a clear direction.
3: Volume:
Volume on the breakout was not significant, but after the breakout, big volume appeared as a follow-up.
Volume during the correction phase is average.
4: Momentum UNCONVENTIONAL Rsi:
🟢The Unconventional RSI is currently in a sideways zone.
🟢Divergence is evident.
🟢Confirmation is needed for a breakout above the 60 level or resistance.
5: Volatility measure Bollinger bands:
🟢Prices are taking support at the middle band, indicating its significance as a support/resistance level.
🟢A squeeze breakout occurred, going outside the upper band, and prices have already done a "Walking on the band" move, indicating bullish momentum.
🟢A headfake pattern is clearly visible at the low of the previous move.
🟢Dual band derivation suggests that confirmation may take 1 or 2 more days.
6: Strength ADX:
The ADX is in a "kiss and cross" position, but the main line is above 20, indicating that bulls are still in strength.
7: Sentiment ROC:
The rate of change for GBP against CAD is positive, indicating GBP strength.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: The current structure is bearish, but as 4 pullbacks are already counted, there is a high chance that the price can change structure. It is advisable to enter once the choch is done, as the low is already confirmed.
☑️ Entry Move: Impulsive
✔ Support Resistance Base: Trend line now acts as support.
➕ FIB: Activated
↕️ Trend Line Breakout: Broken.
☑️ Final Comments: Consider buying.
💡 Decision: Buy.
🚀 Entry: 1.7040 (1st option), 1.6860 (2nd option).
✋ Stop Loss: 1.6795
🎯 Take Profit: 1.7637
😊 Risk to Reward Ratio: 1:11
🕛 Expected Duration: 30 days.
Analysis Time Frame: Daily
1: Price Structure:
The market is currently exhibiting a bullish price structure, characterized by an initial Behavior of BoS (Breakout of Support). The move is impulsive, and the inducement is completed with liquidity swept internally. This is the 1st pullback in the bullish move, and the extreme order block (OB) remains unmitigated. Strong bullish momentum is evident around the demand area.
2: Patterns:
🟢TREND LINES:
A horizontal support line is observed, acting as a key level of support.
🟢CHART PATTERNS:
A double top pattern with an impulsive breakout and heavy volume is in place.
A rectangle pattern has also broken out, with the previous resistance now becoming support.
A V-shaped swing indicates a rapid recovery.
🟢CANDLE PATTERNS:
A key reversal pattern has formed, signaling a potential trend reversal.
A record session count of 4 candles is observed, indicating strong bullish momentum.
A change in guard pattern has appeared.
Momentum has failed to sustain a clear direction.
3: Volume:
Volume on the breakout was not significant, but after the breakout, big volume appeared as a follow-up.
Volume during the correction phase is average.
4: Momentum UNCONVENTIONAL Rsi:
🟢The Unconventional RSI is currently in a sideways zone.
🟢Divergence is evident.
🟢Confirmation is needed for a breakout above the 60 level or resistance.
5: Volatility measure Bollinger bands:
🟢Prices are taking support at the middle band, indicating its significance as a support/resistance level.
🟢A squeeze breakout occurred, going outside the upper band, and prices have already done a "Walking on the band" move, indicating bullish momentum.
🟢A headfake pattern is clearly visible at the low of the previous move.
🟢Dual band derivation suggests that confirmation may take 1 or 2 more days.
6: Strength ADX:
The ADX is in a "kiss and cross" position, but the main line is above 20, indicating that bulls are still in strength.
7: Sentiment ROC:
The rate of change for GBP against CAD is positive, indicating GBP strength.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: The current structure is bearish, but as 4 pullbacks are already counted, there is a high chance that the price can change structure. It is advisable to enter once the choch is done, as the low is already confirmed.
☑️ Entry Move: Impulsive
✔ Support Resistance Base: Trend line now acts as support.
➕ FIB: Activated
↕️ Trend Line Breakout: Broken.
☑️ Final Comments: Consider buying.
💡 Decision: Buy.
🚀 Entry: 1.7040 (1st option), 1.6860 (2nd option).
✋ Stop Loss: 1.6795
🎯 Take Profit: 1.7637
😊 Risk to Reward Ratio: 1:11
🕛 Expected Duration: 30 days.