USDCAD mid term short opportunity

It seems that the buying force has been around for the last few days and coming to a recent strong supply area as highlighted on chart. A very strong rejection (red candles) was shown around the supply area, this means a lot of selling orders are yet to be filled.

Aggressive traders may place limit order around this area. Alternatively you may wait for double top (No higher high), V shape confirmation and sell, both strategies has pros and con, the limit order method will give you Bigger Risk Reward Ratio (RR), and the wait until confirmation will be safer but less RR ratio.

Whenever retail traders feel its time for the buying move, it is a confirmation for sell. The logic apply both sides. In order for you to make money, retail traders has to loss money.


regards,

Steven

Commentaire:

this trade played out as expected, however took way longer time