Hi Traders! CADJPY forecast follow up and update is here. On April 15th I shared this “CADJPY Technical Analysis And Forecast”. This trade moved as per my plan and provided us wonderful returns and gets added to my list of successful trades. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available! In this post lets do a recap of this setup and see how it developed.
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Now lets summarize the idea first:
Bearish Hidden Divergence, RSI Indicator trend line breakout.
Range, ADX Indicator.
Looking at the H1 chart we could see that the price has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as an evidence of bearish pressure. Also based on the Parabolic Sar the dots are above the price which we may consider as another evidence of bearish pressure. The invalidation level for this bearish view would be the 61.8% fibonacci retracement level of this bearish trend pattern, if the price moves higher in one straight leg, breaks and holds above this level, then this bearish view will be invalidated. Until this invalidation level holds, we may look for pullbacks and then further continuation lower.
On the H1 chart the price moved perfectly as per my analysis, the pullback that we were looking for happened and then the price moved lower exactly as I expected. Most importantly the invalidation level was holding, we have collected amazing profits with this sell trade.
If the setup comes, trade it just like we did in this CADJPY sell trade and we valued the risk with this trade, we had a proper money management plan. In such high volatility period if you would be right then once the price moves, it moves big and fast but if it doesn’t then you know your risk is limited. Don’t trade without planning your risk its a big mistake. In this case we were right and we got wonderful moves which has provided us amazing profits. This trade is good example of how to trade in such high volatility conditions.
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If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
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