HOW TO TRADE MARKET STRUCTURE

HOW TO TRADE MARKET STRUCTURE


1) WE CAN SEE THAT USDCAD HAS BEEN IN AN UPTREND MAKING HIGHER HIGHS & HIGH LOWS. THIS IS DISPLAYED WITH THE A-B-C-D MOVEMENTS

2) AT 'C' WE REACHED A KEY RESISTANCE ZONE AT 1.42500 RESULTING IN THE NEXT PHASE OF THE UPTREND TO CREATE A NEW HIGHER LOW AT D

3) AT 'D' USDCAD BEGINS THE NEXT PHASE OF OVERALL UPTREND AND ATTEMPTS TO MAKE A NEW HIGH. HOWEVER THIS UPWARD MOVE FAILS AS WE FAIL TO BREAK ABOVE 'C' & INSTEAD END WITH THE MOVE TO 'E', SIGNALLING A POTENTIAL END TO THE UPTREND

4) THE NEXT MOVE FROM 'E-F' CREATES A NEW SUPPORT LEVEL AT OUR PREVIOUS LOWER HIGH 'D' (1.41142) ZONE

5) THE NEXT MOVE FROM F-G IS AN ATTEMPT FROM BUYERS AT THE SUPPORT LEVEL CREATED FROM E-F (1.41142) TO TRY AND CONTINUE THE UPTREND HOWEVER 'G' NOW CREATES A LOWER HIGH

6) FROM G-H WE CAN SEE PRICE IS MAKING A THIRD TEST OF THE SUPPORT LEVEL AT (1.41142). A FAILURE OF THE SUPPORT LEVEL HOLDING GIVES US A GOOD ENTRY POINT TO ENTER A SELL POSITION WITH OUR PROFIT TARGET OF 105 POINTS AT 'H' (1.40000)