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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.

Forex Calendar Forecast for 6 Dec 2013

Forex Calendar Forecast for 6 Dec 2013

 

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.

Trend & Strategy of USDCAD on H4 Charts

Trend & Strategy of USDCAD on H4 Charts

Knowing the direction and the strategy to use, we can then look for a possible 1234 pattern.

Small 1234 pattern on USDCAD hourly charts

Small 1234 pattern on USDCAD hourly charts

*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.

USDCAD Straddling Key Resistance of Yr 2011 High

USDCAD Straddling Key Resistance of Yr 2011 High

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)

Possible Trade Management Zones – USDCAD

Possible Trade Management Zones – USDCAD

Possible Danger Zones on USDCAD

Possible Danger Zones on USDCAD

 

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

Topic: H4R

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Last time, many things that I wanted were just dreams, now I see them as possibilities. I’m looking forward to own pent-house suite in Manhattan overlooking Central Park because forex trading with Tflow® makes it possible. Find me on Google+

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3 thoughts on “How to choose pairs which can move using USDCAD”

  1. Poh Choo Irene Heng says:

    Hi Jerome,

    Thanks for the prepared charts. :) Appreciate your effort in the systematic notations – helps to remind us of the thought processes per Box theory & BP drills.
    Yup! Tis a continuous practice of Internalizing this TFlow “SOP”. Getting there … akan datang ;p

  2. Vincent Wee says:

    Do u put pending order @ pt 2 or enter @ 13TL break?

    1. Jerome Lee says:

      Preferably not, as pending orders are prone to be triggered due to any spiking. Instead if you have a PC w/ MT4 always running, set an alarm/alert on it to let you know when price is about to reach.

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