AUDCAD _____ PLAN YOUR TRADES

Hello traders,

AUDCAD is a pair that I have been watching for some time now. Right now, it is trading in a very interesting demand zone. This chart is on the daily timeframe. I want you to go into your weekly timeframe and notice the candlestick on which the demand zone (yellow box) is based. You will notice a strong buying in that candle.

I have noticed this candlestick and how it affects price movement. Most traders focus on just candlesticks but I want you to also focus on a narrative of why the candlestick and the incoming move make sense.

Let's build a narrative,
1. The monthly chart is showing a retracement of bullish price action. In essence, we expect to continue the bullish move soon
2. The weekly chart also has the same bullish narrative as the monthly chart and is inside a strong bullish candlestick
3. The daily chart is showing that sell-side liquidity has been swept on its way to the weekly demand zone. We also have buy-side liquidity to go after.

Now that's how you build a narrative before you start looking for a buy setup.

Remember, because your narrative makes a lot of sense, does not mean the market must obey. That is why you must NEVER ignore risk management.

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Cheers,
David