Hi Traders! CADCHF bearish flag provides sell opportunity for us. A detailed analysis of this sell setup is as follows:
CADCHF D1 Chart:
On the daily chart it looks like the price is creating a potential double wave down and the price has room lower towards the critical level. Currently it looks like a correction is happening and the price moving inside a bearish flag pattern. The price has now reached the top of this bearish flag pattern, we may now look for more evidences of bearish pressure on lower timeframes in order to join the bears.
CADCHF H4 Chart:
On the H4 chart we have a critical zone that has formed based on the fibo levels of the cycles and the top of the daily bearish flag pattern. The price which is moving higher has currently reached this zone, in addition to this we have a potential bearish divergence that is forming at the moment which we may consider as an evidence of bearish pressure. We may now look for bearish setups with more bearish evidences in order to start looking for the sells.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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