Now it seems to be a good (at least more favorable) point to sell short USDCAD
pair. A good Entry is crucial for a good trade and many things shall come together in order to execute it. One of the most important things is the "Thrust", which means a sharp drop (or rise in bull markets) in the direction we intend to trade, usually at lower time frames. This fact is used by the Japanese Candlestick
philosophy as hanging man
, inversed hammer
etc. It seems that we have a thrust here. The other important factor is fatigue. We can observe it on indicators like MACD
divergences etc. A resistance is another thing to observe. Here we have a strong resistance at 1.28. Lastly, we look at the technical or wave patterns and look for completion at many time frames. Currently for USD/CAD
it seems that the wave count is completed (refer to purple wave count on chart). After all this, one shall enter the market with own money management rules, which depends on capital, tolerance of pain, capital assignment percentage,risk vs.reward etc. Good trading.