Hi Traders! We have CADCHF bearish setup forming at the moment. A detailed analysis of this sell opportunity is as follows:
CADCHF D1 Chart:
On the daily chart the price has created a double wave up and the price which is moving higher has reached a critical zone and is currently moving lower. In addition to this we also have a good dynamic resistance and currently the price has created a false break of this downtrend line which we may consider as an evidence of bearish pressure. 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 the price has created bearish divergence which we may consider as an evidence of bearish pressure. If the price moves lower and breaks below the low shown in the screenshot, we may then look for pullbacks and sells with more bearish evidences.
Invalidation: If the price moves higher and break above the last high (marked in green dotted line) with momentum then this sell setup will be invalidated.
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.
I invite you to join me in my live trading rooms, on daily basis, and improve your trading with us.
Also you can get one of my strategies free of charge. You will find all the details here
Chief Trader at Traders Academy Club