Technician

Watch this Pattern: USDCAD Daily Rectangle

FX:USDCAD   U.S. Dollar/Canadian Dollar
1534 8 30
Rectangle pattern is obviously a sideways consolidion or range pattern. The price tend to find demand near the rectangle bottom and oppositely, it finds supply at the rectangle top. Shorting rallies towards the top and buying dips towards the bottom is the favored strategy to deal with rectangles, until PROVEN wrong through a breakout and daily closing.

The best indicators to use with rectangles are oscillators that provide overbought and oversold indications.

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So time to enter long now?
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Price quickly precipitated as price came towards resistance, and strong Fib confluence, so took profits and didn't take any chances near top of range.
+1 Reply
Rocketman PRO Tom_Killick
That is an interesting way to say how the prices retreated; that is, you said, "precipitated," like how chemists call a precipitate forming from a chemical reaction. If you entered a long position now, it would be a bad risk-reward trade off if that is how you trade (if you do you would know what I meant). If you shorted now, this would be a better risk-reward trade off. You can always reverse your position if it goes near your stop. Too bad I cannot see the buy and sell orders in the FOREX market. I only know HALF the information from this chart. It is like throwing a dart into an ocean.

Update: It is end of day April 2, 2014. I would put a buy stop order right above 1.2659 to get long and buy. Then, put a stop under 1.2542.
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No, the RR isn't better at all. I don't buy off of a taking profits day, in an uptrend, after the strong resistance we've seen at the lows. That's not wise to me. I use very tight stop losses, and to go in now could easily stop me out due to pretty much any factor (noise, small fundamentals etc) That's not right. I bought the upper range. And wouldn't like to take the short side unless there's valid proof that there is participants willing to take price down with me.

I dont catch falling knives, which it would be now (In line with sensible trading strategies.)
+1 Reply
Tom_Killick PRO Tom_Killick
No offence, but those orders have no substance yet. Please don't offer trade recommendations and order prices until your knowledge is sound enough, so that novice traders don't see your comment and buy, short on a unpredictable hypothesis. I'd hate to see someone lose their money to it.

For the record: I do not claim to know future direction, future price, or future movements of this Fx.
+1 Reply
Good chart.
As you may have seen, the second top @ 1,28 was acompanied with a bearish divergence on the Stochs in relation with the first top of January and also the second top had a mini bearish divergence followed by a large bearish engulfing.
Let's see what happens.
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Rocketman PRO bloodbath
There was some divergence in the stochastic and the price, but can't you see something else right after that? Prices have a chance to rally up one more time to 1.203, then fall (if he is that active). If it stall at 1.203, then he can sell and can wait for it to go to 1.2454. Anyway...nevermind. take care. Happy holidays!
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bloodbath Rocketman
Rally up to 1.203 ?? I do not understand.

Happy holidays to you too.
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