USDCAD Heading Toward Major Support

14 Eyl 2020

I got in this trade last week Friday, I believe. I never got out because I forgot (I held it over the weekend). Let's get into my analysis and why I think this is a buy. I was expecting price to bounce off the red box initially because after the first bounce off the red box (creating support) it broke structure and made a higher high. **NOTE: the red box was previous resistance making that area a major area, a place where price respects.** So I thought price was going to bounce off the top of the red box to create the higher low indicating change of direction and an uptrend is beginning. But that didn't happen, as you can see, instead it made a lower low then another higher high. That's when I put the orange horizontal ray, expecting price to bounce off of it making a higher low above it. As we know, price isn't perfect but it gave me close enough to what I wanted (as long as it didn't make another lower low we were good!). Then, I was looking for a bullish candlestick pattern and a confirmation candle to confirm the bullish force and the impulse continuation so I could enter without being in much drawdown. Sadly, I missed what would've been the perfect entry. I ended up entering the trade late and on impulse because I missed my entry point. I had FOMO, of course. I know my psychology isn't there yet, but it will be one day. I promise! Anyway, today I marked out the new trend with the Elliott Wave tool and placed my fibs for my take profit. I'm expecting a win, but we'll see how it plays out! Don't forget to leave your thoughts/feedback in the comments on the markup and theory. I'm looking forward to reading them!

15 Eyl 2020

Not

Stop loss was hit :( This was a lesson of not keying in on the technicalities. I was so eager to find an uptrend in a market that is moving sideways. I had a bias of a bullish trend because it wicked higher from the last high but it didn't break/close above that wick which was my mistake. I now have this chart marked up as consolidation. If I decide to get in another trade I'll be sure to post it!