USDCAD POTENTIAL SHORT SWING TRADE OPPORTUNITY
Hey everyone! Hope you all had a blessed and prosperous weekend! GOD is good!
I wanted to come on here and make a post on a potential swing short opportunity I see here on USDCAD. I have been watching this pair for some time with this bias in mind seeing that the weekly timeframe has been making subtle lower swing highs and lower swing lows as well. I had also seen that there is a bearish trendline holding on the weekly as well and the momentum of the sellers has been quite strong, showing seller interest.
So from that higher TF perspective I zoomed in to the daily timeframe and was watching how price was acting at the daily supply levels. We caught a nice 500+ pip swing long position on USDCAD couple months back when it was over-extended and now it is displaying a similar opportunity to the downside! SO lets break it down!
OK so on the daily timeframe price came into a significant seller supply/structure zone. I saw that price had a little reaction, but nothing crazy. MOMENTUM TELLS US EVERYTHING WITH PRICE. It literally is the cheat code as a trader to be able to gauge shifts in the market to help you determine where potential reversals are going to take place!! Whether it be a trend pullback trade, or a reversal trade. MOMENTUM IS THE #1 SIGN OF A REVERSAL. And what I had seen that is just happening today is that the sellers DIDN'T ALLOW price to make new highs above 1.36400 and snapped price right back down, showing us a failure to move higher or also known in the market as a "fakeout". I'm sure there were a lot of breakout traders taking longs, they provided the liquidity for the potential move I see happening here lol BUT THATS OKAY! We need sellers and buyers to trade! OK anyways moving on.
SO another thing I saw was that this recent push higher on the daily timeframe was showing me divergence between these highs, showing me that behind the scenes the strength of the buyer is a lot weaker, and we can see with price it moved just a little higher and sellers snapped it right back, showing us they are interested in this price. AND IF THE PEOPLE/ENTITIES MOVING THE MARKET ARE INTERESTED THAN AS RETAIL TRADERS SO SHOULD WE. So I am looking at lower TF pullbacks, maybe break of lower TF structure support of 1.35000 before looking to short this pair. Either way I see a potential reversal short opportunity here with a good amount of pip/percentage potential!
REMEMBER this is my style of trading. I am a swing trader who specializes in reversals so if this doesn't confirm what you're already looking at for USDCAD or it isn't your style then make sure you aren't using this as trading advice. This is just my outlook based on my understanding of the markets and price action!
But bless you guys thanks for tuning in please like and follow for more accurate posts and have an amazing week!
Cheers!
I wanted to come on here and make a post on a potential swing short opportunity I see here on USDCAD. I have been watching this pair for some time with this bias in mind seeing that the weekly timeframe has been making subtle lower swing highs and lower swing lows as well. I had also seen that there is a bearish trendline holding on the weekly as well and the momentum of the sellers has been quite strong, showing seller interest.
So from that higher TF perspective I zoomed in to the daily timeframe and was watching how price was acting at the daily supply levels. We caught a nice 500+ pip swing long position on USDCAD couple months back when it was over-extended and now it is displaying a similar opportunity to the downside! SO lets break it down!
OK so on the daily timeframe price came into a significant seller supply/structure zone. I saw that price had a little reaction, but nothing crazy. MOMENTUM TELLS US EVERYTHING WITH PRICE. It literally is the cheat code as a trader to be able to gauge shifts in the market to help you determine where potential reversals are going to take place!! Whether it be a trend pullback trade, or a reversal trade. MOMENTUM IS THE #1 SIGN OF A REVERSAL. And what I had seen that is just happening today is that the sellers DIDN'T ALLOW price to make new highs above 1.36400 and snapped price right back down, showing us a failure to move higher or also known in the market as a "fakeout". I'm sure there were a lot of breakout traders taking longs, they provided the liquidity for the potential move I see happening here lol BUT THATS OKAY! We need sellers and buyers to trade! OK anyways moving on.
SO another thing I saw was that this recent push higher on the daily timeframe was showing me divergence between these highs, showing me that behind the scenes the strength of the buyer is a lot weaker, and we can see with price it moved just a little higher and sellers snapped it right back, showing us they are interested in this price. AND IF THE PEOPLE/ENTITIES MOVING THE MARKET ARE INTERESTED THAN AS RETAIL TRADERS SO SHOULD WE. So I am looking at lower TF pullbacks, maybe break of lower TF structure support of 1.35000 before looking to short this pair. Either way I see a potential reversal short opportunity here with a good amount of pip/percentage potential!
REMEMBER this is my style of trading. I am a swing trader who specializes in reversals so if this doesn't confirm what you're already looking at for USDCAD or it isn't your style then make sure you aren't using this as trading advice. This is just my outlook based on my understanding of the markets and price action!
But bless you guys thanks for tuning in please like and follow for more accurate posts and have an amazing week!
Cheers!
Comment:
Now seeing break of structure on 4H and strong daily momentum. Now should be seeing some good downside! Up over 200 pips.. cheers!
Order cancelled:
Not personally liking the momentum that came in from buyers last week on Friday end of week. Watching how the sellers respond to this but personally not looking for continued shorts
Trade active:
OK. So after now seeing a nice strong rejection of highs, price back beneath weekly bearish trendline, divergence still higher TF and that reaction from supply. We may have something here. Watch what price does on potential pullback..cheers!