Categories: Technical Analysis

Sell rallies in USDCAD

Technically the pair might drop one more time in order to complete a divergence on the daily chart. I think we should be looking for sell setup if one appears. Don’t try to force it, if the price doesn’t go as expected. I remind you that this week is full of fundamental events so we should be trading extremely careful and with extra attention, if trading at all. The plan is simple. There is a down trend line coming from the tops on the H1 chart which coincides with a potential double wave duplication. If the pair makes a stop around 1.2140-50 level and creates a divergence on the lower time frames we can look for a sell. Protecting that last high created and the trend line (trend line must hold for this setup to be valid) we can have a pretty nice Risk:Reward Ratio for this trade.

Technical Analysis Overview:

H4 – down trend line, band-to-band move

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H1 – potential double wave move up

Entry:
M15 – If the price respects the down trend line well seen on the H1/H4 charts, makes a stop and forms bearish divergence near the 1.2140-50 level we can go for a short trade, covering the last high created and the down trend line.
Target 1: H1 20 MA
Target 2: 1.1970
Stop Loss: above last high created and the down trend line

Video Explanation:

Yours,
Vladimi

– See more at: http://vladimirribakov.com/forex-education/sell-rallies-in-usdcad/#sthash.uknVAqeD.dpuf

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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.