Since February 24/2021, GBPCAD 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 March 23 2021 I posted on social media @AidanFX “GBPCAD as long as price stays below 1.7376 the pair can push lower to retest the 1.72 handle. Will be watching for selling opportunities.” I also posted the SHORT/SELL entry on social media “GBPCAD SHORT at 1.7328 Stop Loss 1.7378 Target 1.7228 – 1.7178 area.”
The chart below was also posted on social media @AidanFX March 23 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 (black). 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.
GBPCAD 4 Hour Chart March 23 2021
GBPCAD eventually moves lower and on March 25 2021 price hits the 1:2 RR/1:3 RR target area at 1.7178 from 1.7328 sell entry for +150 pips. If you followed me on social media @AidanFX you too could have caught the GBPCAD 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.
GBPCAD 4 Hour Chart March 25 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
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Stocks and ETFs) in 4 different time frames and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days FREE !!! Just click here –> 14 day FREE trialBack