USDCAD has given us quite a few shorting opportunities since the start of 2016. Those who have been subscribers will be aware about of the pre-planned setups and post trade analysis I've done on this particular pair. If you're one of the new subscribers you can find some of the articles below:
Last week we shorted again and I'll give a brief outline of why.
The picture last week looked like this below:
You can find that post here if you missed it. The demand level is clearly visible marked in blue below and current price had closed with a red momo candle, very bearish. Add to that the fact that price clearly looks like it's in a downtrend with lower highs and lows with demand levels engulfed on the way down.
I mentioned that the path looked clear in the previous post and here's why. The prior low was a wick that preceded a series of green candles. Green candles only indicate profit potential for shorts and there was no clear demand until much lower. I highlighted this in the members area and we looked for shorting opportunities. Here's what happened.
After the market opened, price retraced then engulfed 15m demand with a little 15m supply level. I had a small stop of around 15 pips or so and I soon stopped out.
Price rallied again but could close higher than the previous high. It then engulfed lower and created another 15m supply so I got in again. Then this happened:
I then trailed my stop to the closest 15m supply to lock in some profits and kept on doing so.
Price fell a bit further then came back to kick me out before another major move.
The additional drop was over 100 pips which would have been great. What was important though is that I kept to my rules. Over 200 would have been nice but 100 is ok too. There will always be others so I watch and wait.
I hope you found this useful.
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