Time To BUY GBPCAD ?? 2000 Pip Move ??
Higher Timeframes govern the Lower Timeframes so we must always know what is happening on the Monthly and Weekly charts as you will see me explain on this GBPCAD trade setup using a top down approach.
On the Monthly charts we have now entered a key buying area and approaching a very strong ALL time support zone dating back over 12 years ago there has been several strong reactions here previously see image below.
https://www.tradingview.com/x/sFOjL5Ox/
The Monthly chart alone doesn't validate us entering the market straight away we need to drop down to the weekly charts and have a look what we see on the WEEKLY charts is clear change of structure in price action as we start to enter and approach the MONTHLY support area as shown in the image below BUYERS entering the market every time price drops and the down swings getting shorter as we approach the KEY level. Also starting to see the formation of a MACD divergence selling exhaustion?? (see image)
https://www.tradingview.com/x/McrfpuAD/
Next we drop down to the DAILY charts ( see image above) price action clearly validating it's time to start scaling into a BUYING position. We can see the brakes starting to come on price as it enters the KEY MONTHLY level price action starting to move sideways entering an ACCUMULATION market cycle phase after a long drop in price, this is evidence by the DIVERGENCE signals on the MACD.
We can start to scale into a BUYING position here a move back up to 1.76 is very possible we want our stops under the MONTHLY area great R/R on this position. Hope you enjoyed this breakdown.
On the Monthly charts we have now entered a key buying area and approaching a very strong ALL time support zone dating back over 12 years ago there has been several strong reactions here previously see image below.
https://www.tradingview.com/x/sFOjL5Ox/
The Monthly chart alone doesn't validate us entering the market straight away we need to drop down to the weekly charts and have a look what we see on the WEEKLY charts is clear change of structure in price action as we start to enter and approach the MONTHLY support area as shown in the image below BUYERS entering the market every time price drops and the down swings getting shorter as we approach the KEY level. Also starting to see the formation of a MACD divergence selling exhaustion?? (see image)
https://www.tradingview.com/x/McrfpuAD/
Next we drop down to the DAILY charts ( see image above) price action clearly validating it's time to start scaling into a BUYING position. We can see the brakes starting to come on price as it enters the KEY MONTHLY level price action starting to move sideways entering an ACCUMULATION market cycle phase after a long drop in price, this is evidence by the DIVERGENCE signals on the MACD.
We can start to scale into a BUYING position here a move back up to 1.76 is very possible we want our stops under the MONTHLY area great R/R on this position. Hope you enjoyed this breakdown.
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