USDCAD Short Term Sell Trade Opportunity

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USDCAD Short Term Sell Trade Opportunity

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Disclaimer : This is not investment advice. Past performance is not an indicator of future results.

Indicator used: MACD

Tool used : Fibonacci expansion

Hi Traders! We have USDCAD short term sell trade opportunity. A detailed analysis of this bearish setup is as follows:

USDCAD Daily Chart Analysis – Potential Bearish Hidden Divergence and Downtrend lines

On the daily chart we have two downtrend lines that has formed and the price which is moving higher is currently nearing these dynamic resistances, if we didn’t get a valid breakout here we may then expect the price to respect these trend lines and move lower again. In addition to this we also have a potential bearish hidden divergence that has formed based on the MACD histogram between the first high formed on 10th October 2019 and the second high on 13th November 2019 which we may consider as an evidence of bearish pressure. We may now look for more evidences (candle stick patterns, false breaks, trend line breakout etc…) of bearish pressure on lower timeframes in order to join the bears.

USDCAD Short Term Sell Trade Opportunity

 

 

USDCAD H4 Chart Analysis – Bearish Divergence

On the H4 chart we have a bearish divergence that has formed based on the MACD indicator between first high on 30th October 2019, the second high on 8th November 2019 and the third high on 13th November 2019 we may consider this as an evidence of bearish pressure. We may now look for bearish setups with more bearish evidences on lower timeframes in order to join the bears.

USDCAD Short Term Sell Trade Opportunity

 

USDCAD H1 Chart Analysis – Two Important Resistance Zones In Play

On the H1 chart we have two important resistance zones that has formed based on the downtrend lines in the daily chart and fibonacci expansion levels of the waves we have. We also have a bearish divergence that has formed based on the MACD Moving Average which we may consider as an evidence of bearish pressure. Once the price reaches the first resistance zone which is formed based on the 161.8% fibonacci expansion of the first wave at 1.32909, the 61.8% fibonacci expansion level of the second wave at 1.32766 and the daily downtrend line, we may look for bearish setups with more bearish evidences (candle stick patterns, false breaks, trend line breakout etc…) in order to start looking for short term sells. Alternatively if the price moves higher then the next area to look for bearish setups with bearish evidences (candle stick patterns, false breaks, trend line breakout etc…) in order to join the short term sells would the second resistance zone which is formed based on 100% fibonacci expansion of the second wave at 1.33139 and the daily downtrend line.

USDCAD Short Term Sell Trade Opportunity

 

Trading Tips

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.

Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

Not sure how to spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join me in my live trading rooms, on daily basis, and improve your trading with us.

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Also you can get one of my strategies free of charge. You will find all the details here

 

Regards,

Yordan Kuzmanov
Chief Trader at Traders Academy Club

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Chris

It was highly useful, thanks Yordan

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Vincent
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Vincent

Thank you so much Yordan

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