The USDCAD 1 Hour chart below was posted on social media @AidanFX January 6 2022 showing the possible SELL scenario. Both price and RSI indicator formed a bearish divergence pattern (Light Blue) signalling a down trend continuation. Bearish market patterns, blue and orange, also terminated point D’s in the same area where the bearish divergence formed. Dynamic and Static Support/Resistance were also visible in this bearish confluence zone. Added bearish confirmation will be when price breaks below the purple trend line. Watch for SHORTS on the green SELL break level.
USDCAD 1 Hour Chart January 6 2022
USDCAD eventually moves lower, SHORT/SELL trade was triggered and blasts through the proposed targets. On January 12 2022 price hits the 1:5 RR target at 1.2500 from the 1.2700 entry for +200 pips. A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media @AidanFX you too could have caught the USDCAD 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.
USDCAD 1 Hour Chart January 12 2022
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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