This is what price looks like on the 12h chart. It looks like it stalled for a couple of days and is now showing more sellers strength. I am considering entering a short trade if price makes a lower low than the previous five candles, with a stop loss above their highs. It is going to give me a good 1.85 risk to reward ratio, with a take profit of 130 pips - next support.
Looking to the left, the chart is relatively clean. I am worried though about what price did 15 days ago (30 candles): as you can see, it seems like there is a minor support/resistance zone on that spot.
If I enter, should I split my position in two and go for a safer 1.0 risk ratio on one of them?
Better be safe than sorry … I would think so but not because of the safer 1.0 risk ratio.
But because I think USDCAD direction is rather murky at the moment as demonstrated by price trading within
Ichimoku’s cloud region on the Weekly and daily chart.
Hi @giovannicali From the above Daily TF chat what I have observed is that:
The structure of the chart clearly showing HH & HL (green circles) which tells a Bullish trend is still in tact unless and until the price would break the last swing lows (1.25302)
The price is also trending above the 100 EMA and within Ichimoku Cloud as advised by @alphahavoc .
However, it has stalled within the area of resistance around 1.28315 and 1.28988,
The prices is also above the Fib ratio of 38.2%.
So, in my opinion, taking a short position from here wouldn’t be a prudent decision.
You may also check the Pip Diddy’s Weekly Review on Loonie here
Please do send the the details of constructing the chart to my inbox. I await with ardour.
Back to your question, base on dennis Strong weak analysis. The figures displayed gives us a daily general strength ranking of all other currency pair vs the yen. If you have read dennis method of constructing the figures.
Well, the numbers are correct, but the problem is how do we interpret the change in percentages and use it to our favour? And that’s the million dollar question.
Dennis seems to pair off the strongest with the weakest and follow the direction of a trend. As for me i prefer to counter trend and average my position. I look for signs of reversal with dennis chart.
I can’t say much for your chart as i have yet to receive the construct of your chart. I can’t comment much on what i do not understand. So please send me the method of constructing your chart to my inbox quickly.
I’ve had a Buy on this since the 19th…when it broke above the WMA 200 (4H) …It is currently ranging in a zone from March 18 with history as far back as Oct 17.
Relying on Currency SW strategy… this pair is too much of a risk to enter at this point… It could go either way… and for what it’s worth it’s been bouncing off the 50% Fib line on the 4 hour…
I’m estimating a continuation to the North, depending on the USD, the CAD has had a strong ride…
That I am… nice 230+ pip profit…USDCAD still in ranging territory for the time being…I don’t normally trade this pair due to the nearly constant whipsawing…
@alphahavoc Nice concise chart BTW…the OsMA, MA Slope with signals provides such a clear picture.
