Disclaimer : This is not investment advice. Past performance is not an indicator of future results.
Hi Traders! CADCHF daily range provides sell opportunity for us. A detailed analysis of this bearish setup is as follows:
CADCHF D1 Chart:
On the daily chart the price is moving inside a range, this range is formed by the highs and lows reaching similar resistance and support zones. The price which is respecting this range so far has currently reached the top of it, in addition to this the price has also created a double top with bearish divergence which we may consider as evidences of bearish pressure. We may now look for bearish setups with more bearish evidences on lower timeframes in order to join the bears.
CADCHF H1 Chart:
On the H1 chart the price has created a classical setup, we had a bearish divergence and then the price moved lower and created lower lows thus forming a bearish convergence for us, we may consider this as an evidence of bearish pressure. As per the book scenario we may now expect pullbacks to happen and currently it looks like a pullback is happening. We may now look for 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.
Not sure how to spot reversals (bounces)? Not sure how to spot breakouts?
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Yours to your success