USDCAD - Easy Trend Trading Setup - Retracement about to end
Hi Traders!
The market is in an Shortterm Uptrend, but in a Longterm Downtrend too.
You can see that espacially when you switch to the higher timeframes, that the overall trend is the Downtrend.
To emphasize the bearish Power, we added the 200MA of the H4 Timeframe to the Chart.
After a long bearish Downmove, the market suddenly made a deep Retracement.
This Retracement was healthy and full of momentum.
The Retracement move started at the Support of 1.33700.
Now it climbed up around 300 pips.
It is forming a Triangle / Flag.
But what does that mean now?
The market did not make a higher high.
This is a clue for bullish weakness.
Furthermore we can assume that the market will continue its Downtrend.
That means, that the bearish power will be stronger than the bullish power in the future.
Anyway, the market could change the trend to an Uptrend. But for that it has to make a higher high.
If the market breaks the Flag upwards (so it would be the Bullish Flag Pattern), then the Trend would have changed.
We recommend to trade the bearish Breakout of the trendline!
Thanks and successful Trading :)!
The market is in an Shortterm Uptrend, but in a Longterm Downtrend too.
You can see that espacially when you switch to the higher timeframes, that the overall trend is the Downtrend.
To emphasize the bearish Power, we added the 200MA of the H4 Timeframe to the Chart.
After a long bearish Downmove, the market suddenly made a deep Retracement.
This Retracement was healthy and full of momentum.
The Retracement move started at the Support of 1.33700.
Now it climbed up around 300 pips.
It is forming a Triangle / Flag.
But what does that mean now?
The market did not make a higher high.
This is a clue for bullish weakness.
Furthermore we can assume that the market will continue its Downtrend.
That means, that the bearish power will be stronger than the bullish power in the future.
Anyway, the market could change the trend to an Uptrend. But for that it has to make a higher high.
If the market breaks the Flag upwards (so it would be the Bullish Flag Pattern), then the Trend would have changed.
We recommend to trade the bearish Breakout of the trendline!
Thanks and successful Trading :)!
Comment:
Here is the RED BOX, but in Big:
