The USDCAD has recently exhibited a trading pattern known as the internal structural reverse. This pattern serves as a robust indication of trend continuation following the completion of a wavestructure. The concept involves trading in the opposite direction when a second break of a structure fails to sustain the prevailing trend.
Enjoy!
The correctional formation target that was mentioned in the related idea has been met; the highlighted area is now acting as support. It looks like higher timeframes failed to close below this key area; nonetheless, this pair might probe that area as a failure test. In such an event, it is expected that the lower timeframes will turn by printing spring bars. So...
This is a price behavior approach, for education purposes.
The Price will not travel in a straight line, and it takes a great deal of time & effort for an ongoing primary trend to change.
The situation in the Aussie and Kiwi is similar and the approach must be the same, however, we have a hierarchy in our selection whether to buy or sell.
When buying we prefer...
The price action here is telling us that price is heading down again.
We are going short this pair as a continuation trade. UsdCad currently sit below big numbers.
No brainer for us to continue to sell this pair.
We have use a very small stop for this trade. 1.2860 we dont want any surprises.
We target the low of this current pullback first before anymore downside...
