Usd Cad 2 possible scenarios like always ;-)
the SHS we see on the daily is what i would like to trade.
An additional confirmation factor for the short is the MA here (break of MA and neckline)
i marked 2 tests from above and if it holds one more time on the next day(s) it could prevent price from breaking down the neckline and giving us a short signal .
If this happens and the ma + neckline holds and price starts to rise i would look for a long entry after breaking the resistance formed by the "right shoulder" to the upside.
Long story short :
Short after break n close through neckline and MA
or
Long after break of resistance formed by right shoulder
No matter which way price will go we are prepared to take action either long or short , thats what i call reacting not predicting ;-) lets see what will happen
An additional confirmation factor for the short is the MA here (break of MA and neckline)
i marked 2 tests from above and if it holds one more time on the next day(s) it could prevent price from breaking down the neckline and giving us a short signal .
If this happens and the ma + neckline holds and price starts to rise i would look for a long entry after breaking the resistance formed by the "right shoulder" to the upside.
Long story short :
Short after break n close through neckline and MA
or
Long after break of resistance formed by right shoulder
No matter which way price will go we are prepared to take action either long or short , thats what i call reacting not predicting ;-) lets see what will happen