EURCAD - Overview on Daily Timeframe - Short
Aside confirming our weekly timeframe overview (www.tradingview.com/...kly-Timeframe-Short/), we have decided to publish a daily timeframe analysis because, in this timeframe, certain details within the structure can be misleading to many traders, making this a perfect chart for addressing these topics and clearing things up.
As you all can notice, within the primary "B" there have been a number of minor corrections, but what is really important to look at is how, at a certain point, the pair has begun to make an ending diagonal formation to the upside. Leading diagonals are one of our favorite reversal indicators, and in this case the pair should have broke the diagonal to the downside, at some point. What is misleading, in all of this, is that not only the pair never broke to the downside, but instead, it spiked up for one more move to the upside.
However, and this is where most traders are mislead, this small movement does not change the overall bigger picture. In other words, the mere fact that the price went up a little more, does not invalidate what the structure has been signaling all along until that point - i.e. that the big downwards movement is about to commence. And if we are right about our analysis and about our understanding of how structure of these financial instruments behaves in general, in the bigger picture the bigger structure will complete itself with it's "C" leg, taking the price towards the 1.36 - 1.30 area. Updates on smaller timeframes will follow.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
As you all can notice, within the primary "B" there have been a number of minor corrections, but what is really important to look at is how, at a certain point, the pair has begun to make an ending diagonal formation to the upside. Leading diagonals are one of our favorite reversal indicators, and in this case the pair should have broke the diagonal to the downside, at some point. What is misleading, in all of this, is that not only the pair never broke to the downside, but instead, it spiked up for one more move to the upside.
However, and this is where most traders are mislead, this small movement does not change the overall bigger picture. In other words, the mere fact that the price went up a little more, does not invalidate what the structure has been signaling all along until that point - i.e. that the big downwards movement is about to commence. And if we are right about our analysis and about our understanding of how structure of these financial instruments behaves in general, in the bigger picture the bigger structure will complete itself with it's "C" leg, taking the price towards the 1.36 - 1.30 area. Updates on smaller timeframes will follow.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.