Hey guys,
I've identified a possible trade currently in motion for EURCAD. I'd like to explain to you why i think this is a trade, and how i'll proceed, if i do, in fact choose to trade it.
So at Line 1 we have our Top Level Resistance, Line 2 is Bottom Level Support. These are both at these points because, price has moved significantly counter to the current trend.
Line 3 is our upward diagonal resistance and line 4 is our downward diagonal resistance.
So, I think this could be a trade because of these two reasons. Those being:
- Line 2 has acted as support multiple times, and each time, price has moved significantly counter to the current trend, concluding it is a true support.
- Line 4 is constantly being breached, suggesting there is strength for the price to go higher
Why i wouldn't place this trade currently:
- Price action is still under Line 4. This is a downward trending line and could still push the price down, and even possibly below Line 2.
My next steps:
I'll set an alert on both Line 2 and Line 4, this will inform me if price action has reached either of those levels. I'll be considering a LONG position if price action breaks Line 4, and retests, to confirm that it is now Support.
If Line 2 is broken, i.e, the price moves significantly below this point, i will no longer consider a LONG trade.
Thank you for taking the time to read this,
Feel free to ask any questions you may have,
Many Thanks,
I've identified a possible trade currently in motion for EURCAD. I'd like to explain to you why i think this is a trade, and how i'll proceed, if i do, in fact choose to trade it.
So at Line 1 we have our Top Level Resistance, Line 2 is Bottom Level Support. These are both at these points because, price has moved significantly counter to the current trend.
Line 3 is our upward diagonal resistance and line 4 is our downward diagonal resistance.
So, I think this could be a trade because of these two reasons. Those being:
- Line 2 has acted as support multiple times, and each time, price has moved significantly counter to the current trend, concluding it is a true support.
- Line 4 is constantly being breached, suggesting there is strength for the price to go higher
Why i wouldn't place this trade currently:
- Price action is still under Line 4. This is a downward trending line and could still push the price down, and even possibly below Line 2.
My next steps:
I'll set an alert on both Line 2 and Line 4, this will inform me if price action has reached either of those levels. I'll be considering a LONG position if price action breaks Line 4, and retests, to confirm that it is now Support.
If Line 2 is broken, i.e, the price moves significantly below this point, i will no longer consider a LONG trade.
Thank you for taking the time to read this,
Feel free to ask any questions you may have,
Many Thanks,