Hey guys,
this chart is the hourly chart on USDCAD but my analysis starts as usual on the daily tf where we had a nice engulfing candle at previous resistance with RSI overbought condition. This give me a nice background to look for selling signals. As we go down on lower timeframes you can see the engulfing candle represents a sharp impulse to the downside that broke the ascending trendline. This means we can now look for shorting opportunities as it retraces back to previous structure. In this case it seems to form an AB=CD pattern that allowed me to outline a reversal zone where i can seek for trading opportunities.
I'll keep you updated!
If you want to ask questions or share your view, leave a comment below.
Otherwise, see you in the next chart!
this chart is the hourly chart on USDCAD but my analysis starts as usual on the daily tf where we had a nice engulfing candle at previous resistance with RSI overbought condition. This give me a nice background to look for selling signals. As we go down on lower timeframes you can see the engulfing candle represents a sharp impulse to the downside that broke the ascending trendline. This means we can now look for shorting opportunities as it retraces back to previous structure. In this case it seems to form an AB=CD pattern that allowed me to outline a reversal zone where i can seek for trading opportunities.
I'll keep you updated!
If you want to ask questions or share your view, leave a comment below.
Otherwise, see you in the next chart!