USDCAD POTTENTIAL SETUPS FOR THE WEEK.
1. Identify the Current Trend: Begin by assessing the current trend of the USDCAD pair. Is it in an uptrend or a downtrend? Trends can be identified by drawing trend lines or using technical indicators as observed our current trend is shifting to the bearish setups
2. Spot the Change of Character: To anticipate a potential change in character, you should look for signs of exhaustion or reversal in the existing trend. When we have Brocken the lower high of the previous run
3. Wait for Deeper Retest: After identifying potential signs of a change in character, it's important to be patient and wait for confirmation. This often involves waiting for a deeper retest of key support or resistance levels. A deeper retest means that price retraces further into the prior trend, offering a clearer confirmation signal.
4. Confirmation of New Trend: To confirm the change of trend, look for the following:
Breakout: Once the retest is complete, watch for a breakout above a significant resistance level (if anticipating a reversal from a downtrend). The breakout should ideally be accompanied by increased trading volume.
5 Higher Highs and Higher Lows: Observe if the price starts forming higher highs and higher lows. This pattern is characteristic of an uptrend and indicates a potential change in character.
6. Monitoring and Adaptation: Keep a close eye on the market once you've entered a trade. Continuously monitor price action and adjust your strategy as needed based on emerging developments.
2. Spot the Change of Character: To anticipate a potential change in character, you should look for signs of exhaustion or reversal in the existing trend. When we have Brocken the lower high of the previous run
3. Wait for Deeper Retest: After identifying potential signs of a change in character, it's important to be patient and wait for confirmation. This often involves waiting for a deeper retest of key support or resistance levels. A deeper retest means that price retraces further into the prior trend, offering a clearer confirmation signal.
4. Confirmation of New Trend: To confirm the change of trend, look for the following:
Breakout: Once the retest is complete, watch for a breakout above a significant resistance level (if anticipating a reversal from a downtrend). The breakout should ideally be accompanied by increased trading volume.
5 Higher Highs and Higher Lows: Observe if the price starts forming higher highs and higher lows. This pattern is characteristic of an uptrend and indicates a potential change in character.
6. Monitoring and Adaptation: Keep a close eye on the market once you've entered a trade. Continuously monitor price action and adjust your strategy as needed based on emerging developments.