USDCAD - Downtrend getting weaker - Trendline Break
Hi Traders!
The market is in a Downtrend.
Here is the weekly Chart:
As you can see we firstly had an ascending Parallel Channel.
Then we had a descending wedge which was moving between two main S&R Levels.
After that the market broke out, made Triangle and came back quickly.
The market is now again in this consolidation area between to S&R Levels.
The question now is: Is the market going to resume the Downtrend or will it make a retracement move.
You'll see later, there is a potential answer to that.
Let's move on to the Daily:
What do we already know from the weekly?
It's the Triangle and the consolidation box.
What is new?
It's the Trendline and the Trendline Break,
the retest of the Level,
the second trendline occuring and
the target is at Resistance.
As you can see, we want to buy the market, even though it is in a Downtrend.
Why?
First of all, we want to buy from Support, because we expect, that the market will reach the Top.
So --> we buy from Support.
And now look at the ATR indicator.
This indicator represents the volatilty of a given market.
You can see that the volatility is decreasing.
And when volatility decreases, there are less chances to make a descent Trending Move.
That's why we expect a Retracement move.
Lastly, here is the screenshot for the H4 Entry Timeframe:
You can see the Trendline and the TP & SL.
The risk-to-reward ratio is 1 to 3.
We recommend to devide the TP in 2-3 pieces.
Thanks and successful Trading :)!
The market is in a Downtrend.
Here is the weekly Chart:
As you can see we firstly had an ascending Parallel Channel.
Then we had a descending wedge which was moving between two main S&R Levels.
After that the market broke out, made Triangle and came back quickly.
The market is now again in this consolidation area between to S&R Levels.
The question now is: Is the market going to resume the Downtrend or will it make a retracement move.
You'll see later, there is a potential answer to that.
Let's move on to the Daily:
What do we already know from the weekly?
It's the Triangle and the consolidation box.
What is new?
It's the Trendline and the Trendline Break,
the retest of the Level,
the second trendline occuring and
the target is at Resistance.
As you can see, we want to buy the market, even though it is in a Downtrend.
Why?
First of all, we want to buy from Support, because we expect, that the market will reach the Top.
So --> we buy from Support.
And now look at the ATR indicator.
This indicator represents the volatilty of a given market.
You can see that the volatility is decreasing.
And when volatility decreases, there are less chances to make a descent Trending Move.
That's why we expect a Retracement move.
Lastly, here is the screenshot for the H4 Entry Timeframe:
You can see the Trendline and the TP & SL.
The risk-to-reward ratio is 1 to 3.
We recommend to devide the TP in 2-3 pieces.
Thanks and successful Trading :)!
Comment:
Here is the RED BOX in Big:
