Okay,
so firstly can we please just for the sake of simplicity and just so everyone can stay on the same page stick with the same terms. I think if we do this it will avoid a lot of confusion and questions being asked 1 thousand times over.
So the 4 main price action signals we will begin to trade are;
1: Pin Bar Reversal
2: Engulfing Bar
3: 2 Bar Reversal
4: Inside Bar
There are some others but we will stick to these as this is more than enough and to be honest all I really concentrate on these days anyway.
Okay so as for the USDCAD, you state it is a downtrend so why would you want to trade against it? So when you ask if it is A+, I can answer this by saying when trading agasint the trend a trade can be a good trade but never A+. Yes I do trade both side of the market i,e: with and against the trend however the majority of my trades are with the trend.
I suggest for new traders ALL their trades should be with the trend. If people follow this one strategy (which most do not) they will be very happy!
Okay so to analyse the daily chart for you. We had the tiniest little not quite pin bar. Yes price has now gone higher but not a good setup whatsoever. Way way to small! Please keep this mind forever: Big Candles = Big momentum! People get scared when they see a really big pin or engulfing bar. I lick my lips as I know the bigger the setup the bigger the market is telling me something!
Now the pin you have highlighted on the 4hr chart is a better setup but still not a great setup as against such a strong trend.
This market has hit a proven support area that you have highlighted clearly on your daily chart. Price has now found support and bounced. I wouldn’t be suprised to see price go higher from here. I would in fact like to see it go higher. Why? Because then I can look for price action at a key resistance level to get short in line WITH the trend. With me?
Okay so for an example of a better setup on this chart I have attached a chart below of the same USDCAD 4hr just a little previous. A nice Pin Bar WITH the trend.
Safe trading,
Johnathon