EURCAD recently made a faekout at the marked candle.
The candlestick pattern we can see is a Shooting Star. Yes, it does have a small wick at the bottom, but more or less looks like a Shooting Star.
After that, it fell right back into the channel. It's good to see that the channel is being respected.
Now, there's two possibilities that we're looking at for a trade.
Firstly, if we look at the Top Red trendline and the Green Trendline, we can see that there is a triangle formation. The price will decide if it wants to stay in the channel or not depending on how it reacts at the end of that triangle.
Next thing we look at is (assuming price respects the channel and continues down) that the price will start respect the big channel (Top Red trendline and Bottom Red Trendline) as it has been doing for a while now...
It's time to wait now and understand where price is going. In both possibilities, we have a trade which can be taken, but we must ensure that we have our rules and confluences in check before taking the trade.
The candlestick pattern we can see is a Shooting Star. Yes, it does have a small wick at the bottom, but more or less looks like a Shooting Star.
After that, it fell right back into the channel. It's good to see that the channel is being respected.
Now, there's two possibilities that we're looking at for a trade.
Firstly, if we look at the Top Red trendline and the Green Trendline, we can see that there is a triangle formation. The price will decide if it wants to stay in the channel or not depending on how it reacts at the end of that triangle.
Next thing we look at is (assuming price respects the channel and continues down) that the price will start respect the big channel (Top Red trendline and Bottom Red Trendline) as it has been doing for a while now...
It's time to wait now and understand where price is going. In both possibilities, we have a trade which can be taken, but we must ensure that we have our rules and confluences in check before taking the trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.