I am sharing the technical analysis of #NZDCAD for the week starting 20 December 2021. I’m using the following indicators:
First off, I start my technical analysis with the weekly chart time frame then I scale down to M15. Then I also spot the patterns whenever possible.
Weekly time frame:
The first thing we should check in the weekly time frame is the trend lines, both intersect in a point forming a triangle that can breakout up or down.
Then the engulfing bullish candlestick is a sign for bullish rally, but hold on! Not yet. This engulfing candle is for the Weekly time frame, so its effect is over days or weeks. This is something you must understand and keep in mind.
Next thing is the rising channel as we can see the price reached the bottom edge, which is a sign for a bullish move, but the Daily time frame is pushing the price down.
Now, the price is rising from a demand zone, which means that the price is expected to rise. But not yet! Don’t make your decision as yet.
Go down to the daily time frame, we want to spot a sniper entry. Keep going.
Daily time frame
The next thing we should check is the daily time frame trend lines which is bearish.
Then the engulfing bearish candlestick is a sign for bearish entry, but hold on!
Next thing is the falling channel as we can see the price is right at the middle (indecision).
Now, the price is rising from a demand zone, which means that the price is expected to rise. But not yet! Don’t make your decision as yet. We’re still mixed up!
Go down to the hourly time frame, we want to spot a sniper entry, it is worth the efforts. Keep going.
Hourly time frame:
There you go! Daily is bearish, and the pattern here shows that the price has broken the uptrend, retested and now expected to fall.
I will sell right from this level. Leave a comment below if you agree / disagree. I will see you later.
These indicators are Investment Castle products that are exclusively available in the MQL5 Market.