Two Potential Sell Limits [ Trade with the Big Boys]
Multi Timeframe Analysis
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Recommendation:
GBPCAD is bullish on the monthly time frame but on a long bearish move to the downside on the Weekly and Daily TF. For the current we see the pair retracing to the 38.2% and 50% Fibonacci level.
Further downside is expected the next few week as COT reports signify stronger CAD vis a vis GBP
As the daily downtrend looks forthcoming, I’m looking at short opportunities
Entry rule: 4H chart should confirm that the bullish retrace had turned bearish with MACD below zero and the price going below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI dropping above the 50 signal line
Potential Entry
I take entries at Institutional Order blocks (billions of dollars worth of orders made by hedge funds, big banks and heavy industries.). Fresh order blocks made within the last days are at:
1.76072
1.73978
A sell limit at these Order Blocks will drive draw down to nil as soon as liquidity is captured by the markets on these price levels
Potential profit target at the latest daily low or in extension, the -27.2% Fibonacci level (1.71369)
Trade short with confidence: COT reports confirm the direction
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Recommendation:
GBPCAD is bullish on the monthly time frame but on a long bearish move to the downside on the Weekly and Daily TF. For the current we see the pair retracing to the 38.2% and 50% Fibonacci level.
Further downside is expected the next few week as COT reports signify stronger CAD vis a vis GBP
As the daily downtrend looks forthcoming, I’m looking at short opportunities
Entry rule: 4H chart should confirm that the bullish retrace had turned bearish with MACD below zero and the price going below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI dropping above the 50 signal line
Potential Entry
I take entries at Institutional Order blocks (billions of dollars worth of orders made by hedge funds, big banks and heavy industries.). Fresh order blocks made within the last days are at:
1.76072
1.73978
A sell limit at these Order Blocks will drive draw down to nil as soon as liquidity is captured by the markets on these price levels
Potential profit target at the latest daily low or in extension, the -27.2% Fibonacci level (1.71369)
Trade short with confidence: COT reports confirm the direction