Short from 1.25580 down to 1.24400

Multi Timeframe Analysis

Trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the D1 master trend.

Note: I use Daily/ 4H market structure and wave analysis to prep for potential moves. The MACD and EMA indictors are used only for entries from the 4H or 1H timeframe

Recommendation:

USDCAD faces daily and weekly bearish structure and will be taking zigzagging downward vectors till 1.2440. This may herald the end of bearish structure for a high probability buy setup.

As the daily and 4H downtrend looks forthcoming, I’m looking at short opportunities.

Take a Short market order position upon the confluence of valid entry rules on the 4H or 1H chart.

-=ENTRY RULES=-

For SHORT:
4H chart should confirm that the bullish retrace had turned bearish. The MACD should have dropped below zero signifying a bearish environment. Price has dropped below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is below the 50 signal line

For LONG:
4H chart should confirm that the bearish retrace had turned bullish. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is above the 50 signal line

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