USDCAD has been playing the back and forth ‘tennis match’ between two containment lines, the upper resistance and lower support of this daily range.
We’ve had a couple of good price action range signals which did produce nice returns as price bounced through the range cycles.
The recent test of the support level did offer a small bounce but in the end, the bears re-grouped and charged straight through that support level like a hot knife through butter – pushing the market outside the range boundaries.
Now we’ve seen the breakout, we’re looking for the re-test – which is basically the holy grail of swing trading. If the market does re-test this level, watch out for bearish reversal signals like a Rejection Candle or a Breakout Trap & Reverse move to form a Bearish Outside Candle.
Ben D'limi
I like your method, it’s v. simple and straight forward. it’s still reasonable to go long on the break of the inside day with a SL below it and TP 1R.R . A sell limit would be more profitable
Thank you .
Replying to: Ben D'limi
TheForexGuyAuthor
Do you mean a buy limit? Yes a breakout order would be valid, these mean reversions can fire up pretty quickly and be pretty explosive?
Tom
Hi,
I would like to ask you, what is better option> pending order on R/S line or waiting for PA signal.
Thank you
Replying to: Tom
TheForexGuyAuthor
I don’t do touch trading, I always wait for a signal to form at the S/R level before taking action.