The Daily Chart of Nzd Cad showed us no follow through for the SHS Pattern here no break n close below trendline or neckline so no trade for us here .
This is a good example why i always wait for a candle close before taking a decision .
Traders who not waiting for it could have been short after price breaking the trendline with a glowing red candle just to see price grinding higher and leaving an indecisive candle closing above the trendline again
The h4 chart showed us also no SHS follow through , there was no neckline break as well.
You can maybe argue that the trendline was broken and price was able to close below BUT the Neckline wasnt !!
And when it comes to trade the SHS you NEED a neckline break to take a trade.
So no Short trade here .
But lets take a look at the Long side
Trendline clearly holds .
Look at all the wicks pushing price away from the trendline followed by a strong bullish candle.
This was clearly a long opportunity .
Let me show you the same chart in a smaller timeframe to see how you could have played it :
This is H1 Chart and we need to take a look at the trendline here .
All this reactions showing us that the trendline is holding and we looking for some confirmation to go long .
So the easiest way is to look for a structure to break like another trendline in this case .
See the confirmed small falling trendline (3 touches) after price breaks through this trendline to the upside we were ready to take a long trade with a target at the supply zone right at the “head”
This is a way of stay flexible and react to the market behaviour .
First we were looking for the short and the SHS to play out but price showed us that it doesnt want to break down by respecting the rising trendline several times , time to switch our bias from short to long and adappt to the market conditions by scanning the price structure and find a break of another structure giving us a clue of the direction .