We recently looked at a bullish flag setup on the EURCAD daily chart.
The market moved into higher highs after a strong rally, then developed a counter-trend flag line – which price used as temporary resistance.
Now the market has broken through the flag pattern, we’ve not a nice bullish inside day sitting there that we can build a breakout trade off.
If the highs of the inside day are broken, then it could be the catalyst for the next push up into higher highs.
Everything on this chart now is screaming bullish technically, and the inside day even had a thick bullish body.
I would recommend waiting until London open before getting involved with this, as we don’t want to be triggered into a breakout during the Asia session.
The Annoying Asia Session Fake Out Occurs
I would recommend waiting until London open before getting involved with this, as we don’t want to be triggered into a breakout during the Asia session.
So this is a good example of how early session breakouts can be deceptive.
This inside say broke its highs during the Asia session, which means we didn’t enter it.
Just after London come online the breakout that occurred during the Asia session collapsed, and the market dropped hard as it continued into the US session.
Steve Epperson
Yip, I see it now. Nice down trend developing on the daily chart. I hope you can catch it and make a ton of money all the way down to weekly resistance. Thanks for taking the time to reply.
Steve Epperson
Update: thanks to you for teaching me candles. I always used bars before I discovered your site. Anyway, I was able to get out early with profit before the USDCAD reversed. That was from your teaching. I am excited by this current candle developing on the new weekly support. Could be another great opportunity. Since being on your site my score is 3 wins 0 loss with an average of 1:2 risk/reward.
Steve Epperson
I was mistaken when I said I pulled the trigger on this, It was actually the USD/CAD. Oops, sorry. The setup was similar, Still waiting to hit my target. I think I would have been okay on this one too, since I am really sticking to the weekly charts. When I look at the weekly EUR/CAD, I can see consolidation in the form of a nice ascending, bullish triangle. I fee like if your stop loss was below the current weekly support, I am optimistic you will do well.
All the Best in your trading.
Replying to: Steve Epperson
Dale WoodsAuthor
Hi Steve,
Thanks for the feedback.
Since there is a massive sell signal sitting on the daily chart right now, I am not interesting in being a buyer here.
I am looking at getting short on more clearer setups on EURAUD and EURNZD. All the best on the USDCAD trade.