I have some more examples of short term trades that were taken just last week. Both happen to be short trades and both were on USD pairs. The setups were very similar to the ones that I posted in the previous analysis article here and there's a video to go along with this one too.
USDCAD - Short
In last weeks forex outlook post, I talked about how I was expecting a short move on USDCAD given that we'd seen an engulf on the weekly and the daily chart. You can find that post here. We saw price produce a daily momo candle away from supply after the engulf and I wanted to see price test that momo before actually entering a trade.
When price rallied up to the red daily momo candle, I shared the levels I was looking at. In this case, I wanted to see an engulf of the 15m demand level to confirm that price was going to head down.
As you will see in the image below, price dropped down, created supply then engulfed that very 15m demand level I had shown. I marked up another 15m demand level that was created lower down as I moved my stop down to just above it. You can see where I took the screenshot shortly after my exit. This trade was good for over 100 pips.
USDJPY - Short
UJ also gave us a trading opportunity last week. Now this is one that we've been watching for some time in the members area. We saw the engulf of demand on the weekly and the path was pretty clear in terms of profit potential. I indicated that I wanted to see a retrace up after engulf before considering to trade a move back down through that profit zone on the left.
Price then engulfed demand on the daily too which made the trade look even better.
So price retraced last week and then when it started to come back down I shared what I wanted to see with the members. Here's one of the pictures:
Price tested the red daily momo candle before creating supply on both the H1 and the 5m charts so the short trade was confirmed. There are some images below but be sure to check out the video which goes into much more detail.
I hope you found this useful.
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