USDCAD - Market Structure - No ideal Setup from our POV
Hi Traders!
In this idea, we want to show the main structure of the market.
For us, there hasn't been any Trade Setup developed yet.
As you can see, the market broke out the weekly Trendline, which goes back all the way to April of the last year.
After that, the market moved higher and a lower ascending daily Trendline occured too.
The Movements above the Trendline happened in a similar way:
Firstly, the market slowly went up.
Then it got momentum and shooted up.
From above, the market made a 180° degree turn over and came back with high momentum.
Then it consolidated a little bit.
Recently, the market broke this ascending Trendline bearish.
This Movement was clean with average red candles (not too high momentum).
Now, a consolidation started above the daily Support.
---------------
For us, it is not an ideal place to take a trade.
If you want to sell, then the market obviously has fallen a lot until now and we are not sure,
whether it can build up enough bearish momentum again or not.
If you want to buy, then the next Resistance is pretty near and that's why you don't get a
favourable Risk-to-Reward ratio (as we usually do not take long-term trades, our target is mostly the next major S&R).
Let's see how it develops ;-)!
----------------
If you have any questions or another Point Of View, feel free to comment!
Thanks and successful Trading :-)!
In this idea, we want to show the main structure of the market.
For us, there hasn't been any Trade Setup developed yet.
As you can see, the market broke out the weekly Trendline, which goes back all the way to April of the last year.
After that, the market moved higher and a lower ascending daily Trendline occured too.
The Movements above the Trendline happened in a similar way:
Firstly, the market slowly went up.
Then it got momentum and shooted up.
From above, the market made a 180° degree turn over and came back with high momentum.
Then it consolidated a little bit.
Recently, the market broke this ascending Trendline bearish.
This Movement was clean with average red candles (not too high momentum).
Now, a consolidation started above the daily Support.
---------------
For us, it is not an ideal place to take a trade.
If you want to sell, then the market obviously has fallen a lot until now and we are not sure,
whether it can build up enough bearish momentum again or not.
If you want to buy, then the next Resistance is pretty near and that's why you don't get a
favourable Risk-to-Reward ratio (as we usually do not take long-term trades, our target is mostly the next major S&R).
Let's see how it develops ;-)!
----------------
If you have any questions or another Point Of View, feel free to comment!
Thanks and successful Trading :-)!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.