Previously I shared with many to look out for DollarCad, as market was testing key level and was about to prove a directional movement. Last month, on the Monthly Chart, market close below bullish retracement low. This signifies a high probable bearish breakout on this market pair. Additionally, market channel has obviously shown that candlestick is trading out of the zone.
Similarly, Weekly Chart, price action shows that market has already broken off bullish channel with it failing to break weekly key level. The price action on recent DollarCad indicates that market would have a decent profit taking on the retracement. This was what caught my attention.
[Daily Chart] In order to be apart of the retracement, I’ve to get a highly probable sign to be entering. Obviously, who would want to trade in the opposite general direction. Last Wed, I noticed price action broke off consolidation range with a strong bullish momentum which encouraged an entry to be made.
On the 4 Hour Chart, a complete bullish candlestick hit my limit order with a 1:2.84 RR ratio.
Hopefully everyone caught this piece of price action! 🙂