Opportunity everywhere!

What a start to July, no I am not in profit unfortunately I am just about breakeven due to some very kind unforeseen Brexit circumstances yesterday afternoon giving price a nudge in the wrong direction. However we do not run, we not cry and we certainly do not give up! If an exterior factor out of our control effects the markets we simply dust ourselves off and move onto the next trade. 

Which brings me nicely onto the next paragraph.. trading opportunity is literally saturating the markets at the moment. I currently have 3 positions running which 2 are in profit and 1 currently at entry with more positions setting up nicely as I am typing this blog post. 

USDCAD - A nice setup which has been gently placed on my watchlist and now watching from a distance ready and waiting to strike at the most precise moment.  Price is heading back to test support located at 1.3050 region which means if we get another test of the lows we will have a H4 TF double bottom served on a silver plater.

We initially can not just jump into a trade because we assume a double bottom is going to play out, hit TP and we walk off into the sunset with all our pips, we of course need confluences. Confluences are the facts that we extract from the charts to build our bias and find the perfect entry. 

My first confluence to build my bias is of course the potential double bottom off of support, simple! 

The second I would like to see price break lower than the last low but the body of this candle retrace back behind the first low... I hope I've explained that clearly enough. So essentially we will have a long wick that has pushed past the last low and the body of the candle has closed back above that last low. The perfect time frame for this confluence will be the H4 TF. I always like to see a spike lower than the last low because this is usually means traders are getting taken out of the wrong side of the market before price moving in the direction I want. Yes.. its a cruel game we play but in order to make profits unfortunalty someone else has to be loosing theirs. 

I will then look to enter this setup for long position using the additional confluences that my MSB strategy provides and keeping risk super low. My first target will of course be the neckline which shares its price with the H4 50EMA both of which will act as resistance. 

A 2nd long opportunity will also be presented if the neckline and H4 50EMA are both broken, which will then bring me onto another blog post and the MSBC strategy. 

Of course there is the other ultimatum that price breaks below the last low and the body of the H4 TF candle closes below the last low which will make this set up invalid. Knowing when not to trade is equally as important as knowing when to trade. 

Thanks for checking in.. Catch you tomorrow 

Ryan Chandler 
Doing my best to get shit done! 

Written By Ryan Chandler

1 year ago (2019-07-03 16:57:24)