USDCAD On Daily. Trend Shift
In this instance, I will demonstrate a trend shifting trade. I use a customized indicator with RSI and a 21 EMA plotted. When the EMA crosses RSI from below, there is a possible bullish trend shift and vice versa: when the EMA crosses RSI from above, it's a possible bearish trend shift. I only use the cross as a confirmation, I don't blindly rely on it! Please use the Internet to familiarize yourself with RSI and the concept of moving averages (EMA in this case).
On the daily chart for USDCAD, I recently saw a bullish cross of the above-mentioned indicator. I also saw a congestion area to the left so there was a possibility that the price could bounce off of that area and that would have resulted in a stop-out. So, I waited for a breakout to occur (which of course was totally arbitrary and was dependent on fundamentals amongst other things) . The breakout actually happened but then I had to make sure the price action will follow through to the north. So, I waited for the first leg pullback and entered long on the first strong bullish candle, which resulted in a nice profit in a couple of days.
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