USD/CAD Swing Set Ups and Pip Movement Analysis |
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The USD/CAD is in a uptrend on the 30 minute chart and I’m waiting on a pullback for a swing trigger long. The 34ema high is currently at 1.0608 and just above the major psychological level at 1.0600. This offers the pullback excellent support - as long as the mark up cycle is intact!
So what’s the likelihood that I’ll see this pullback. Take a look at the graph below as the USD/CAD Price Movement Range analysis for the 30 minute chart is showing support near 1.0605.
Since the entry long needs a move lower to 1.0608 the entry on the 30 minute chart is a reasonable. One of the issues for any trade entry is proximity. In other words, how likely is the entry to be reached? The price range analysis helps identify those levels on specific time frames that are likely to be reached and therefore could potentially trigger the trade.
I did mention before that the trade is only valid as long as the market is in mark up. If there is a stall and the market transitions into accumulation or distribution, the pullback buy is no longer valid.
Both charts have the MT4 chart pattern plug-in from Autochartist and the graph is courtesy of PowerStats.
Filed under: Chartology
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