Since April 21/2021, EURCAD has been trending to the downside. To determine if a market is trending, price action must be forming higher highs/higher lows in an uptrend and lower lows/lower highs in a downtrend. We at EWF always recommend our clients to trade with the trend and not against it.
On May 11 2021 I posted on social media @AidanFX “EURCAD if price stays below 1.4751 will be watching for selling opportunities on break below 1.4696.”
The chart below was also posted on social media @AidanFX May 11 2021 showing several clear bearish market patterns. Besides that the pair was in a downtrend, another sign that signalled a trader to watch for SELLING opportunities was when indicator and price formed a bearish divergence market pattern (pink). This divergence market pattern signals “trend continuation” which was at the moment trending to the downside. Another added visible sign that signalled traders was when price respected and moved lower off the Dynamic Moving Average Resistance (blue). Respecting the Dynamic Moving Average together with the Bearish Divergence Pattern formation allowed a trader too clearly distinguish that the right side to trade was to the downside. Seeing these bearish signals was all I needed to be confident on posting the SHORT/SELL trade setup for a move lower.
EURCAD 30 Minute Chart May 11 2021
EURCAD eventually moves lower and on May 12 2021 price hits the 1:2 RR target at 1.4596 from the 1.4696 sell entry for +100 pips. If you followed me on social media @AidanFX you too could have caught the EURCAD move lower. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
EURCAD 30 Minute Chart May 12 2021
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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