USDCAD downtrend price action with Tflow®
Keep forex trading simple, easy to understand, execute
An up trend has always been defined as a series of higher-highs, higher-lows and a down trend, a series of lower-highs, lower-lows. This is a simple concept/principle and but poorly understand and overlooked. This simple concept/principle is also a pillar of Tflow® forex trading method which employs a simple way of visualising trend, placing emphasis on trend-following. The outcome is a forex method that follows trend, make trade decisions systematic, without gut-feel.
In this chart of USDCAD, week-week/month-month down trend is absolutely clear and evident. A trader who can be a good market follower, don’t second guess, keep entry and exit simple, I don’t see why he cannot make money.
From that bearish expansion (lower-low, orange box) in Week 04 that terminated the previous uptrend, USDCAD has been falling non-stop with lower-highs for 11 weeks. Therefore to approach USDCAD, do the following:
- Don’t pick bottom, do not go long.
- Look for intra-week highs to short into retracement.
The sign to watch for that this trend is finally over appears with a higher-high week that terminates the current lower-high sequence.
How to use this very simple method to trade? Explained in these posts.