USD/CAD HTF Bullish Confluence? Multiple Breakout Opportunities
Updated
Bullish Outlook
In this post (Bearish Outlook and former post update below), I highlight the potential bullish confluence we’re seeing on multiple higher time frames. This HTF reversal could begin with the former strong support level that we broke through but could act as support again – this would create an extremely convincing Inverse H&S as our left shoulder has tons of liquidity already built up.
Current Buy Trades:
On the Mid Time frame (2hr) - If we do break out on the 2HR with a healthy retest and bullish CHoCH, we will reconsider for a potential IHS signal upward toward the mitigated HTF supply zone and attempt to create a Major CHoCH to the upside.
On the higher Time Frame: we should keep an eye on the weekly and daily charts for pattern confluence and strong level breakouts.
This potential confluence of the bullish flag and Inverse H&S on the weekly is showing strong signs as the selloff has been controlled within this channel and if we do see a breakout of channel and neckline, we could make our HTF move up.
Confluence:
If we do see some bullish structure start to form, we might see confluence on multiple time frames which would be a very bullish HTF signal:
1. 2HR – Bullish breakout of ascending triangle and CHoCH
a. Subsequent BOS and LTF trade signal to upside.
2. Daily – Inverse H&S neckline retest and breakout
a. Resistance to turn support
3. Weekly – Breakout of bullish flag upper channel and neckline of IH&S.
LAST POST Summary and Update: (Bearish Outlook)
As I mentioned in my previous post, on the higher time frame weekly chart we mitigated our demand zone and hit expected resistance at the top of our bearish channel and failed to make a higher high. We then smashed through a strong support level and created a major CHoCH. We just recently mitigated that higher time frame supply zone but failed to make a high so we are currently on the bearish path toward a new lower low.
Our projected trade from last post (linked below) is still in play and awaiting its Choch signal. As we can see we have twice mitigated our LTF supply zone as I mentioned would occur in my previous post (linked below), and are awaiting an entrance signal via 2HR (MTF) CHoCH and subsequent 15min supply zone mitigation.
Current 2HR Sell trade:
We are now creating an ascending triangle and although typically a bullish signal, due to the HTF outlook, I’m looking for a potential liquidity grab from the upper resistance level and a fake out. If we do grab liquidity and see a strong move I’m looking to short this on the rejection of the triangle breakout.
In this post (Bearish Outlook and former post update below), I highlight the potential bullish confluence we’re seeing on multiple higher time frames. This HTF reversal could begin with the former strong support level that we broke through but could act as support again – this would create an extremely convincing Inverse H&S as our left shoulder has tons of liquidity already built up.
Current Buy Trades:
On the Mid Time frame (2hr) - If we do break out on the 2HR with a healthy retest and bullish CHoCH, we will reconsider for a potential IHS signal upward toward the mitigated HTF supply zone and attempt to create a Major CHoCH to the upside.
On the higher Time Frame: we should keep an eye on the weekly and daily charts for pattern confluence and strong level breakouts.
This potential confluence of the bullish flag and Inverse H&S on the weekly is showing strong signs as the selloff has been controlled within this channel and if we do see a breakout of channel and neckline, we could make our HTF move up.
Confluence:
If we do see some bullish structure start to form, we might see confluence on multiple time frames which would be a very bullish HTF signal:
1. 2HR – Bullish breakout of ascending triangle and CHoCH
a. Subsequent BOS and LTF trade signal to upside.
2. Daily – Inverse H&S neckline retest and breakout
a. Resistance to turn support
3. Weekly – Breakout of bullish flag upper channel and neckline of IH&S.
LAST POST Summary and Update: (Bearish Outlook)
As I mentioned in my previous post, on the higher time frame weekly chart we mitigated our demand zone and hit expected resistance at the top of our bearish channel and failed to make a higher high. We then smashed through a strong support level and created a major CHoCH. We just recently mitigated that higher time frame supply zone but failed to make a high so we are currently on the bearish path toward a new lower low.
Our projected trade from last post (linked below) is still in play and awaiting its Choch signal. As we can see we have twice mitigated our LTF supply zone as I mentioned would occur in my previous post (linked below), and are awaiting an entrance signal via 2HR (MTF) CHoCH and subsequent 15min supply zone mitigation.
Current 2HR Sell trade:
We are now creating an ascending triangle and although typically a bullish signal, due to the HTF outlook, I’m looking for a potential liquidity grab from the upper resistance level and a fake out. If we do grab liquidity and see a strong move I’m looking to short this on the rejection of the triangle breakout.
Trade closed: target reached
Take profit was hit however we lacked the signal and demand zone mitigation to enter
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