With a period of consolidation, following a strong bearish trend, you may find corrective opportunities, as profit seekers close positions, and bears play the corrective wave.
The MacD has crossed up.
Bollinger band width has settled, indicating an end to the bearish trend.
From the time of posting, the last 28 ...
With the USD CAD, my long position started at 1.29.
Although this idea is being posted a little after, there is still a potential window of further opportunity.
Keeping it simple, on a weekly chart, with Heikin Ashi candles to smooth out the PA.
Indicators MACD, OBV are indicating a bullish trend. Also, ...
You will see a clear downtrend in this weekly chart, as we actively test the 200SMA.
Combining the downward signal generated by the Mac D, this is a reasonable setup to watch for a bearish trend.
Heikin Ashi candles have been selected for the purposes of this published idea.
Possibly due for a correction after a strong rally of %1.40 on Thursday May 5th 2016.
The 4 hour chart offers a grave stone doji reversal pattern.
How to trade this setup;
You should wait patiently for an intraday bearish signal on Friday May 6th 2016.
It could be time for a retrace.
I want to illustrate a clear down signal in my opinion.
Lets start with one of the few indicators on the screen, as I will cover them all as we progress.
The first indicator is the SMA 10/40. We see an initial downwards cross, just before wave 1 on the cart, where I have drawn out wave one of five.
This was ...