As you can see the market is in a descending triangle. That means, that the market is making lower highs, but no lower lows.
The effect of this pattern is this: The sellers keep selling at the trendline. The buyers are buying at the support, but they're making lower and lower profit.
What does that mean?
There aren't any buyers left who can push the price higher. The SL of the buyers are directly under the support.
CONCLUSION:
If the Breakout occurs: - The Sellers will sell because of the trendline - The SL of the Buyers will hit and that'll push the price lower - The Breakout traders are getting in
Never forget: The more squeezed the market is, the more explosive the breakout will be.
Agree with you 100%. This move has been long overdue!!
swissmoneymakers
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@Trading_Vista, Thanks, you're right 100% too!
When will the breakout occur?
But there is a secret: The longer the market "rests" the more energy it'll have.
Good for us :)
Dave-FX-Hunter
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nice, check my profile and follow me too
swissmoneymakers
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@DaweFXHunter Sure! Mutual Support is important, especially in these days :)
JNTrader210
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This was a terrible idea, I lost out badly. I don’t think we considered the impact on the Canadian economy with the low oil price.
swissmoneymakers
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@JNTrader210 Thanks for the comment! Just because the trade went wrong, it doesn’t mean it is a bad idea. We‘ve lost too, but by adapting Risk-Management the loss was calculated. If the low price had an impact on UC, why did the market broke downward and not directly upwards? Keep managing your risk bro and have a nice day :)