MARKET PHASE OANDA:GBPCAD is in a long term downtrend (daily) with a short term corrective structure that has been taking place (4 hour).
AREA OF VALUE Price continued to break new highs within this corrective structure. Eventually, price reached an area where sellers stepped in, resulting in a buildup of liquidity (buy stops, longs, short stop losses) above the corrective structure swing highs. Price violently moved up to trigger the buy stops (liquidity) to pair against the sell orders needed to take price down. Price has already started it's initial move down, the velocity of the downward move caused a gap in price around 1.71512. Price has not retraced to this level, we have our sell limit pending.
TRADE I will be entering short on OANDA:GBPCAD with the following parameters:
Sell Limit: 1.71512 Stop Loss: 1.71762 Take Profit: 1.71012