I am looking to short CADJPY for a downtrend continuation trade (weekly MA is in down trend). 1st I will be using the monthly closings as supply and demand zones (green=supply, red=demand).
Secondly a timing indicator (Lazy Bear) in the Daily chart signals overbought or oversold market conditions. These 2 elements provide the trade setup and the price action in lower time frame chart
will provide me with the entry signal.
Currently the price is at a monthly supply zone in the daily chart. At the close of the week price stopped at the zone with a bearish 4H candle. The price action in H1 As I am short biased I will be placing 2 sell stop trades
just below the supply zone at 79.050 with possible TP areas at 78,764 and 78,245. The SL can be placed at 79,27 just above the H1 demand zone . If trade is actively managed the SL can be traced and TP placed further down.
Secondly a timing indicator (Lazy Bear) in the Daily chart signals overbought or oversold market conditions. These 2 elements provide the trade setup and the price action in lower time frame chart
will provide me with the entry signal.
Currently the price is at a monthly supply zone in the daily chart. At the close of the week price stopped at the zone with a bearish 4H candle. The price action in H1 As I am short biased I will be placing 2 sell stop trades
just below the supply zone at 79.050 with possible TP areas at 78,764 and 78,245. The SL can be placed at 79,27 just above the H1 demand zone . If trade is actively managed the SL can be traced and TP placed further down.