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USDCAD - Trade idea!

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#USD/CAD# USDCAD - Trade idea!

4HR USDCAD Technical Analysis - COUNTER TREND TRADE.

Technical aspects:

Pattern: Small descending channel smaller term , until it's broken Bullish flag Intra day could come into play if it breaks towards upside.
Resistance: 1.31248, 1.31410, 1.31793, 1.32076
Support: 1.30639, 1.30367, 1.30048

If it breaks towards resistance area of 1.31248 I'd see the reaction of the pull back for further confirmation, would indicate a bullish flag formed and take it to the resistance zones. The way I trade I tend to scale out of my trades my main target areas are the resistance areas and last taking profit would be 0.382 Fib Retracement areas.
Easy way to either add alert when it breaks or add an order.

However, if we do pull back within the descending channel we are in the key support area is 1.30438 and that's key area of support! Whilst trading the Loonie I do take into mind WTI Crude and of course dollar index as well.

The type of market we are in, most of my trades at this current moment of time are counter trend - which basically means I am going against the longer term trend. Which you must have a plan for, to build the right confidence you need in trading and journal it the types of trades as well is very important!

It was a very quiet week last week, which I know for some traders I've spoken to that work even within larger institutions it has been frustrating for sure! However, the way I keep myself busy on a very quiet week we must remember to be disciplined and to not over trade, but doing this I do go onto very small time frames 10-15mins time frames and my trades will be not be a swing trade in a range bound choppy market I tend to have my trades closed by the end of the day not doing as many large targets I would do if it was a swing trending market but it isn't right now.

Until we are still within these ranges, best to keep your targets small, keep to day trading until consolidation period is over and if you don't understand what the chart is indicating go to another pair currency or simply don't trade till you're comfortable to get back into the game. Usually, when I step away from the market, I don't step away and put on the next new tv show, I instead read and extend my knowledge further within the markets, there are plenty of very resourceful books based not just on markets, but on psychology aspects to help! For any further book recommendations, feel free to message or comment down below I'd be sure happy to help!

Key tip: A large percentage of trading is psychology! Have trust in yourself and your trading plan.

Have a great week ahead.

All the best,

Trade Journal (TJ)

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