Starting from now on I am going to start getting into detail as to why I am taking these trades.
1. Weekly Rejection
2. Failed inverse head and shoulder
3. Mean Reversion
On a serious note, if prices are being rejected with a confluence of many other factors, the odds are in the favor of sellers. ...
I have been watching the stock market for a very long time and seeing it's movements is a sight to see. From hearing people getting whipsawed to people losing accounts due to their incompetence. Anyways.... the market can do 3 things.
1. Break highs sucker in bulls and drop like a rock.
2. Drop like a rock
After calling and catching the nice short on EU I think it's time to decide if it's make or break for EU's Uptrend/Correction.
Purple box indicates interesting confluence....
"Uptrend" + Monthly Resistance (turn support?) + Daily and 4hr Divergence + Trendline (3 or more valid touches)
Messy chart, messy ...
I would personally be using this analysis to either Long or Short USDCAD.
As far as explanation the first demand zone is a (DBR) Drop Base Rally indicating Buyers overpowered the sellers.
*The bottom demand zone is:
A: The lowest low
B: The first rally indicating buyers are more greedy and sellers are more ...