USDCAD - Sell after Pullback - Thought Process in Bullet Points

*** Trade at your own risk! ***
*** Not every Idea is also traded by us ***

Hi Traders!

Summary:
The Setup is to wait for a Pullback (after the Breakout) to sell from there.


The following description will show you the thought process of the setup in bullet points.
For the setup, let's look at two major Timeframes: The daily TF and the H4-TF.
In the end, we show you a Trading Plan.



Daily TF:

s3.tradingview.com/s...shots/v/v8bYhuPz.png

- Market was in Downtrend
- Price broke big Trendline
- This is bad for Bears, because the Trendline was maybe the driving power of the Downtrend
- If structure of LHs and LLs broken + we have HHs and HLs --> no more Downtrend
- After end of Trend normally Range (orange Box)
- Now the price is at top --> price aims to go down
- Don't be too ambitious --> Market made HL, so maybe we again have HL and price does not reach Support of Range
- Moving to H4-TF


H4-TF:

s3.tradingview.com/s...shots/v/VcMod2lQ.png

- Market was in ascending Parallel Channel
- Price broke Parallel Channel
- Price broke important Support
- We have LL, so no more Uptrend
- Also don't have Downtrend, because no LH
- Also market didn't retrace since Breakout
- Also RSI showed oversold state


Plan:

- Wait for Retracement of Price
--> Wait for better price
--> Wait for LH which gives structure for Downtrend
- Set your TP1, TP2 of full TP at near Support Levels



If you have any questions or another Point Of View, feel free to comment!





Thanks and successful Trading :-)!