Red Pill of Trading: A Glimpse into Hidden Market SetupsIn the depths of the market matrix, few can see beyond surface price action.
The Commitment of Traders data is a revelation, a signal that speaks to those ready to see the true forces at work. This strategy has uncovered potent setups across currencies, energies, grains, and metals—all primed for major moves.
But I cannot offer this knowledge freely. Information that comes cheap is rarely valued. True insight, like the red pill, demands a commitment. A choice to see beyond the veil. Today, I offer you just a glimpse—one of many market truths revealed by this strategy.
The Canadian Dollar.
The CAD is positioned for longs. But let me be clear: we don’t blindly long this market. Instead, we wait, watching for a confirmed entry trigger on the daily timeframe. Yet everything points towards a powerful move.
Commercials are positioned extremely long relative to the last 26 weeks, and approaching levels we last saw in August—right before CAD surged. Open interest has been increasing, and when OI increases, we ask ourselves: "Who is causing this open interest increase?". In this case, it is increasing while the Commercials are getting very long, which is bullish.
Last week, investment advisor sentiment hit a bearish extreme, a contrarian signal that lingers now into this week. CAD is undervalued against both gold and treasuries—another indication of buy potential. Two weeks ago, we saw ADX drop below 20, while commercials heavily increased their longs, creating a bullish divergence that grows with each new indicator.
Supplementary indicators stand by this setup: Insider Accumulation, Stochastics, %R, even a bullish momentum divergence is setting up, though it’s not yet confirmed.
And this is just the beginning.
If you want to uncover the full array of setups across markets this week and next, to see the real truth behind the moves, then take the red pill. Reach out. This is an opportunity, a privilege to step beyond mere price action and learn the market’s deepest secrets.
Inquire with me, and together, we’ll peel back the layers of the matrix. The choice is yours.
6C1!
COT Red Pill: Canadian Dollar Primed for a Long The Red Pill of Trading: Illuminating the Canadian Dollar's Long Potential
In the vast and enigmatic expanse of the financial matrix, truths often lay hidden, obscured by layers of complexity and uncertainty. Today, I offer you an opportunity—an invitation to take the red pill and awaken to the profound insights that the market has to reveal. We turn our gaze to the Canadian Dollar (CAD), a currency poised for potential transformation, waiting for the discerning trader to recognize its worth.
The Commercials
Let us begin with the Commitment of Traders (COT) data, a powerful tool that unveils the positioning of the market's key players. The commercials—those seasoned entities whose knowledge and resources run deep—are currently positioned significantly long. Their holdings approach levels last seen in August 2024, a time of significance with extreme long positioning that heralded a remarkable four-week upswing in prices. This is no mere coincidence; it is a bullish signal, a whisper from the market that should not be ignored.
However, wisdom demands patience. To embark on this journey, we must first wait for a confirmed trend change entry trigger on the daily timeframe. The fundamentals are ripe for a rally, yet we must ensure our actions are grounded in calculated strategy rather than impulsive enthusiasm.
Open Interest: A Window into Market Dynamics
As we delve deeper into the market's secrets, we uncover the insights offered by open interest analysis. During the recent multi-week downtrend, we have witnessed a spike in open interest—a phenomenon that warrants our attention. Here, we must pose a critical question: who is driving this increase?
in this case it is the commercials, accumulating long positions and enhancing their stake, we find ourselves looking at a robust bullish indicator. The increase in open interest driven by those with intimate market knowledge signifies a potential shift in the market’s direction. This insight is a crucial key to unlocking the doors of opportunity.
The Contrarian’s Edge
But the revelations do not end there. Investment advisor sentiment has plummeted to bearish extremes, a classic contrarian signal that savvy traders know to watch. As the masses succumb to pessimism, history has shown us time and again that opportunity often lies in the shadows of despair.
The WillVal indicator further illuminates our path, revealing that the Canadian Dollar is currently undervalued compared to Gold and Treasuries. This mispricing signals an impending revaluation—a chance for the discerning trader to seize the moment. Seasonal trends indicate that we should anticipate price movements upward as we approach January, and the positioning of small speculators(the usually wrong public)—excessively short—presents yet another contrarian opportunity, one that the wise trader can capitalize on.
The Choice Before You
You now stand at a significant juncture, a crossroads where knowledge and opportunity intersect. The insights I have shared are akin to taking the red pill—a revelation that exposes the true nature of the market, laying bare the possibilities that await those willing to see.
As you contemplate your next move, remember that successful trading is not about surrendering to the whims of the crowd but about embracing the hidden truths that lie beneath the surface.
Join me on this journey into the unknown. Follow Tradius Trades, where we dissect the intricate patterns of the market and equip you with the insights necessary to navigate this complex landscape. The truth is out there, and together, we can unveil the secrets of trading with clarity and conviction. Choose wisely, for the matrix of opportunity awaits your command.
High Timeframe Analysis for Canadian DollarDISCLAIMER: This is not trading advice. This is for educational and entertainment purposes only. There are significant risks involved with trading. Do your due diligence.
MULTI-TIMEFRAME STRATEGY.
This approach is great for traders that don't have a lot of time to spend at the charts. This strategy can easily be managed with a few minutes a night. If you have kids, or are busy with another profession, this strategy is excellent.
HTF: 12 Month
ITF: 2 Week
ETF: 12 Hour
CANADIAN DOLLAR ANALYSIS:
I am looking for the Canadian Dollar to trade up to 2023 highs. My bias is due to the "swing low" we put in over the last few years, suggesting that overall there is some bullish momentum.
The intermediate timeframe is in flow with my htf objective. I want to see CAD trade down into the 2W fair value gap &/or 2 week orderblock, and then give an entry (cisd, 18 period ma entry, 10-8 mac entry). The target is 2023 highs. These trades can last a fairly long time due to the high timeframe objective. I will either roll over into next contract, or utilize spot forex market for these positions. To be clear, this does not mean I blindly long. What this means is this market has a setup, which means we wait for the trigger/timing tool to get me in. Until then, I do nothing.
If you want to learn more about the PD (Premium/Discount) arrays, I suggest you study ICT (Inner Circle Trader). My application of his work is unique, but to learn the fundamentals, there is no better place than his YouTube.
If you have questions, feel free to shoot me a message.
Have a great week.
Smart Money Positioned to SHORT CAD - COT StrategyDISCLAIMER: This is not trade advice. This is for educational purposes only to demonstrate how I am looking to participate in this market. There is significant risk involved in trading, do your own homework and due diligence.
COT Strategy
SHORT
Canadian Dollar (6C)
My COT strategy has me on alert for short trades in 6C if we get a confirmed bearish change of trend on the Daily timeframe.
COT Commercial Index: Sell Signal
OI Analysis: Upmove in price has seen Commercials aggressively move to the short side - bearish.
Valuation: Overvalued vs Treasuries
True Seasonal: Strong seasonal tendency to go down to October.
COT Small Spec Index: Sell Signal
Supplementary Indicators: %R
Remember, this is not a "Short Now" idea. These indicators are not timing tools. They simply tell us that this market could have a move of some significance to the downside, which we will participate in with a confirmed Daily trend change to the downside.
Good luck & good trading.
USDCAD Analysis: Anticipating a New Bullish ImpulseUSDCAD is beginning a new bullish impulse after retesting the previous resistance area, which has now transformed into a strong demand zone. This retest is a crucial technical signal, suggesting that the pair is poised for a potential new upward movement.
By examining the Commitment of Traders (COT) report, we observe that the positioning of large traders supports a bullish outlook for the USD against the Canadian Dollar. This sentiment is further reinforced by our supply and demand analysis, which highlights the demand zone as a key level where buying interest has emerged, providing a foundation for the price to move higher.
Seasonality trends also play a significant role in our analysis. Historically, this period of the year tends to favor a stronger USD against the CAD, adding another layer of confidence to our bullish forecast. The confluence of these factors—the retest of the demand zone, favorable COT positioning, and positive seasonality—strengthens our expectation of a sustained upward movement in USDCAD.
We are closely monitoring the price action and are prepared to capitalize on this bullish setup. Should the price continue to rise from the current levels, we anticipate further gains. However, it's essential to remain vigilant and adapt to any market changes that might influence our analysis.
Additionally, for a comprehensive understanding of the factors influencing this expected bullish trend, please follow our detailed analysis on CAD futures provided below. This in-depth analysis will offer insights into the broader market dynamics affecting the Canadian Dollar and support our long position strategy in USDCAD.
✅ Please share your thoughts about USDCAD in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
6C (USDCAD) Right Shoulder Possibly FormingWhile ideally the head would be a little bit higher, I'm monitoring this formation in expectation of a right shoulder forming and a subsequent sell-off. Fundamental reasons for a sell-off could be Canadian rate cuts or the fear of canadian rate cuts as the economy slows, or a reversal in the recent bearish trends in the price of oil.
CANADIAN DOLLAR FUTURES (6C1!), H1 Potential for Bearish DropType : Bearish Momentum
Resistance : 0.77520
Pivot: 0.77025
Support : 0.76450
Preferred Case: On the H1, price is moving below the ichimoku cloud which supports our bearish bias that price will drop from our pivot at 0.77025 in line with the overlap resistance, 23.6% fibonacci retracement, 78.6% fibonacci projection and 50% fibonacci retracement to the 1st support at 0.76450 in line with the swing low support.
Alternative scenario: Alternatively, price may break through pivot structure and rise to the 1st resistance level at 0.77520 in line with the overlap resistance and 78.6% fibonacci retracement .
Fundamentals: There is an expectation of a rate hike of 75bps from the BoC in July and the markets might be starting to price in the policy adjustment which gives us a weak bullish bias.
the canadian dollar to buy or sell?after a long trading range, the market dropped. Then a pullback trying to reach the previous support was entamed.
if the market has a strong green volume, it is obvious that we will reach the previous tops of the market. If else, the support (yellow) will be broken and the market would begin a descend.
So let's look at the volumes and see what algotraders will decide...