Buy Opportunity in CADCHF

5 gün önce

Buy Opportunity in CADCHF
Current Price Action: Observe the current price movement in CADCHF. Ensure the market is in a consolidation or retracement phase after a strong upward move, indicating potential for further upward movement.

Liquidity Pool: Identify a liquidity pool above the current price. This could be a significant swing high, a market structure level, or a large order block where there is likely to be a build-up of stop-loss orders and pending buy orders from institutional participants.

Entry Point:

Buy when price breaks above a key resistance level that is aligned with the liquidity pool (previous swing highs, order blocks, or major resistance zones).
Look for a small retracement or consolidation just below the liquidity zone to confirm strength before executing the buy.
Confirmation with Order Flow:

Watch for bullish order flow or an uptick in buying volume as price approaches the liquidity zone. If there is increased buying pressure, this could signal the accumulation phase has completed, and the price will likely move higher.
A break and close above the liquidity zone, combined with higher volume, can act as a strong confirmation for entering a buy.
Stop Loss:

Place a stop loss just below the recent swing low or consolidation area, ensuring a favorable risk-to-reward ratio.
Take Profit:

Set your target at the next significant resistance zone, liquidity pool, or Fibonacci extension levels above, depending on your desired risk-reward ratio.