Hi Traders! CADCHF critical zones provide bearish opportunity for us. A detailed analysis of this sell setup is as follows:
CADCHF H4 Chart:
On the H4 chart we have a special or triple cycle, currently it looks like this cycle has completed itself and a retrace is happening at the moment. As per the book scenario we may now expect a correction to happen until the price reaches the 38.2% – 50% fibo retrace zone of this cycle. We also have a bearish hidden divergence that has formed which we may consider as an evidence of bearish pressure. We may now move to lower timeframes and look for bearish evidences in order to join the bears.
CADCHF H1 Chart:
On the H1 chart based on the fibo levels of the cycles, we have two critical zones that has formed. Currently the price has reached the first critical zone and we also have bearish divergence which we may consider as an evidence of bearish pressure. Until this critical zone holds, we may look for more evidences of bearish pressure in order to join the bears. Alternatively if the price moves higher then the next area to look for sells with bearish evidences would be the second critical zone.
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
Yours to your success