How to choose pairs which can move using USDCAD
One of the common questions that gets asked is,
There are so many pairs, how to know which one to choose?
Choosing which pairs to trade can be a daunting tasks to new traders and even experienced traders might find some difficultly
One way is to take a look at the forex calendar to see which currency will be expecting High Impact news. Though we do not trade during the news however we do understand that news does move the market. *Remember to switch TimeZone to local time.
Later this evening we are expecting 2 pieces of high impact news which will affect USD and CAD. Thus it is logical to assume that USDCAD will be a pair that could see some movement in addition to the other #USD or #CAD currency crosses.
Taking a look at USDCAD
Previous students presented an analysis on USDCAD in one of our Best Practice classes. Let us determine if there are any changes to the direction and strategy to use.
Knowing the direction and the strategy to use, we can then look for a possible 1234 pattern.
*Note: This 1234 pattern is a small one and price might develop it into a larger pattern.
Switching to the Higher Timeframe, we can see that price is currently at a key resistance. Price has to clear this level for any chance of it going higher.
The next step is to look for where trade management should take place as well as where to determine a change of opinion might take place. (TP Zone / Danger Zone)
The above steps of analysis were all done with the steps taught in Best Practices which strive to drill into students the best practices to follow through repetition and constant reminder.
Our next scheduled BP lesson will be the last one of the year. Students can call Cynthia to register @ 64923196.
Date: 11 Dec 2013, 7pm to 10pm