Potential Trend Continuation Pattern
Note: As always, I want it to be very clear that this is just more of me practicing my chart analysis skills, and that I am not taking this trade in real life. I have not back-tested this particular strategy on the USDCAD, so I do not know how likely or unlikely this type of trading strategy would work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Alright, let's go ahead and jump into the analysis, So, price action broke below the most recent lowest low of 1.3152, and then closed below those lows at 1.3067. Once again, this leads me to suspect that there is a chance that the market could continue to fall due to previous support now becoming resistance. So, this could be another trend continuation trade setup, where the market would retrace back into previous structure and the 0.618 Fib retracement level. If that were to happen, I would hypothetically short at 1.3164, with a target at 1.3060 and a stop lose 10 pips above previous structure highs at around 1.3239. It will be very interesting to see what actually happens here, the market could potentially not even come up and touch the 0.618 Fib Retracement level, and simply just continue on in its general direction without giving me much of a chance to get involved. To be fair, I would be very happy to know that at least, in terms of market direction my analysis would be correct in that situation. It would however suck that I would be wrong with regards to the height and duration of the retracement. Although, it doesn't appear to be this way at the moment, the market could also totally reverse and rally thereby stopping me out. So, like always, we'll just have to wait and see.
All that being said, if you are not practicing your chart analysis like this every day, you are seriously hurting your trading, and your potential to become a consistently profitable trader. Chart analysis is one of the most basic fundamental skills a good trader needs in order to become successful in this field. So, take it seriously and practice it.
Hope you guys have a great day today, and as always, know the risks and plan accordingly.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Alright, let's go ahead and jump into the analysis, So, price action broke below the most recent lowest low of 1.3152, and then closed below those lows at 1.3067. Once again, this leads me to suspect that there is a chance that the market could continue to fall due to previous support now becoming resistance. So, this could be another trend continuation trade setup, where the market would retrace back into previous structure and the 0.618 Fib retracement level. If that were to happen, I would hypothetically short at 1.3164, with a target at 1.3060 and a stop lose 10 pips above previous structure highs at around 1.3239. It will be very interesting to see what actually happens here, the market could potentially not even come up and touch the 0.618 Fib Retracement level, and simply just continue on in its general direction without giving me much of a chance to get involved. To be fair, I would be very happy to know that at least, in terms of market direction my analysis would be correct in that situation. It would however suck that I would be wrong with regards to the height and duration of the retracement. Although, it doesn't appear to be this way at the moment, the market could also totally reverse and rally thereby stopping me out. So, like always, we'll just have to wait and see.
All that being said, if you are not practicing your chart analysis like this every day, you are seriously hurting your trading, and your potential to become a consistently profitable trader. Chart analysis is one of the most basic fundamental skills a good trader needs in order to become successful in this field. So, take it seriously and practice it.
Hope you guys have a great day today, and as always, know the risks and plan accordingly.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Order cancelled:
Hey guys, I just wanted to give ya'll an update on this potential trade setup. So as you can see, the market unfortunately never came up enough to touch my entry @ 1.3164, and simply continued with the bearish trend to make a new lower low, lower close. While I am disappointed that my analysis was not correct with regards to how high the market would retrace back into previous structure, I am however, very happy that my overall analysis was correct in terms of the markets direction. That being said guys, this is the reality of trading, where your chart analysis can be correct overall, and yet you still don't get to be involved in the trade. All in all though, this was an excellent learning opportunity, that will help to sharpen my chart analysis skills in the future. If you are not engaged in this kind of practice everyday, I would highly encourage you to start. If you want to be a consistently profitable trader, it's going to take a lot of practice and a lot of time, so don't wait to get started.