CAD/JPY: Dynamic Trend Still Red
Leonardo Barata | Nov 22, 2015 01:46AM ET
CAD/JPY
This is a trade analysis where I give some tips about what you should avoid in your trading. This trade was opened right after strong signal (Demand) appeared on the chart. Strong signals show that buying has entered the market. But if you do not have other components of a valid VSA setup, you need to step away and wait another chance. This demand may represent buying from weak holders, which open long trades against current price movement.
- At the time of entry, background was weak and it was wrong to think about long trades in this case.
- Entry was made after strong signal, but dynamic trend is still red. For a long trade, dynamic trend has to turn from red to green.
Also in this chart you can see our new indicator – “Reversals,” which is designed to detect price reversals. As you can see, “Reversals” also does not support the entry after the strong signal.
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