Guy's have a look at my previous post before reading this one so we all understand the context of this set-up:
It seems like the bearish trend continuation is in its early stages. I'm short USDCAD since US election night and I am looking to add to my shorts. This move lower won't go in a straight line but the fact that we might have seen a major reversal helps us trading sentiment by means of structure.
I will therefore be looking for consolidations, especially those out of strong levels. We can sell all the continuations of lesser degree with the same risk/reward because our stop loss will be closer.
I will also update AUDCAD and EURCAD which are a bit further in the process but that's perfectly fine. Due to the correlation with USOil I think we might see a significant retrace/consolidation in all CAD pairs before wave 3 will take over, because this move lower will most likely move in 5 waves and we are only in wave 1 at the moment.
Updates will follow!
I will therefore be looking for consolidations, especially those out of strong levels. We can sell all the continuations of lesser degree with the same risk/reward because our stop loss will be closer.
I will also update AUDCAD and EURCAD which are a bit further in the process but that's perfectly fine. Due to the correlation with USOil I think we might see a significant retrace/consolidation in all CAD pairs before wave 3 will take over, because this move lower will most likely move in 5 waves and we are only in wave 1 at the moment.
Updates will follow!
We should therefore be focusing on clues on lower time frames and see whether a potential move lower will be part of a bigger correction or the start of a new bearish impulse.