After a change in direction from yesterday’s early, overall, uptrend. The Cad began a downtrend pattern. I watch for ascending price action lines in a downtrend and descending lines in an uptrend. In this case I took a trade off the break of the ascending trend line. (see pic below). Usually you get good trades when these breaks occur. Just using pricing action and pattern breakouts here, nothing fancy. Keeping my eyes on the charts and waiting for something to stand out is another simple way I will look for trades.
USDCAD bearish trade
This is a type of raw trading. A lot of professional traders will read the charts like this and trade these pattern setups. Reading the charts, checking support levels, resistance levels and then watching for trades between the two is the basic formula.
It’s important to understand market movement in and around trendlines, support and resistance areas
These are tools that traders have been using since the beginning of trading time. They held value years ago and today are still just as valuable in understanding the market flow.
Support and resistance levels will give a trader a really good idea where price has a high probability of stalling, turning around, or taking off. Ignoring these levels at the time of a trade would mean that the trader is taking an unnecessary risk and placing an uninformed trade. For me they act as like a road map to trading more successfully.
Support, resistance, and trendlines are not difficult to learn, and if you can get that extra edge in your trading, you should go for it.
When we trade, looking for specific setups that are presented to us with indicators, price action or whatever your strategy is. Once we have determined that there is a trade setup, we will do very well to verify the trade signal by using either Support, Resistance, or a Trendline.
We will find trades that seem valid, but we won’t want to take them because there is a trendline or an area of support or resistance in the way. Shortly after the trade not taken, we usually see that price bounces off these levels and the trade we would have taken would have lost.
This Support, Resistance and trendline approach that you are going to learn is going to be an invaluable addition to any trading system or methodology. See the video below.
So this was just perfect how it worked out because over the last 48 hrs I have been talking and trading making little predictions about this pair and trading it as it moves along. Take a look and see the live trading in action. Wasn’t planning to put all these videos together like this it was just the way my trading cycle went.
Using The Forex Scanner, many traders have various tools they use for identifying trade setups but few use a logical method to find good markets to trade. Strong trends and patterns usually have the best price flow and follow through. This is why I use this tool to scan the markets and plan my trades. Trading without a plan is like taken a trip without knowing where your going. It can be fun sometimes but usually ends in disaster : 0
In these videos I will introduce my current trading style and how I set the charts up using basic indicators found on most platforms. This is hopefully a chance for you to gain professional trading knowledge and increase your success no matter what level you are at as a trader.
See the next post for the video on Strategy Technique #1
This week the USD/CAD and CAD/JPY are on my watch list.. Possible short trades on CAD/JPY if the current up trend continues to deteriorate. USD/CAD may bounce off it’s current top and head down but it is looking a little if-ie.. : ) Seems like it wants to break out toward the up side. Will see what happens.
This week we are doing a quick review of the EUR/CAD and GBP/JPY. EUR/CAD is currently in a bullish channel having made a reversal signal in the price action after a bounce off support I’m looking for buys on shorter time frames. GBP/JPY is a bit of a mixed bag but still looking for possible trades to the down side short term. Will see what happens. Check out the video below for more details.
In my opinion the more you can learn about analyzing and assessing the markets direction the better trader you become. It is 1 of the major keys to successful trading!