very interesting Level On The USD CAD H1 chart
As you can see the market made a double top which is an indication of a trend reversal.
As you see there is a false breakout of the resistance level (the slight red line around the double top).this false breakout indicated a trend reversal as well.The divergence between the price and the relative strength index confirmed this trend reversal signal.
now the market reached a very important level which is a support level + a bullish trend line .SO what is going to happen and what should we do in this situation ?
I think that the market will still go down according to the technical analysis that I talked about earlier( double top+ false breakout+diveregnece) but the market doesn't know me and it does not care about my analysis.what we know is that the market is at a very important levels so there will be three scenarios :
1- The market will bounce from the support level and continue going up (here we have nothing to do )
2- the market will break strong the support level ( here we can take a short entry)
3-The market will retest the trend line and gives a bearish signal so we can enter after the breakout of the support level.
WHAT DO YOU THINK ABOUT MY IDEA PLEASE COMMENT AND LIKE TO SUPPORT ME
As you see there is a false breakout of the resistance level (the slight red line around the double top).this false breakout indicated a trend reversal as well.The divergence between the price and the relative strength index confirmed this trend reversal signal.
now the market reached a very important level which is a support level + a bullish trend line .SO what is going to happen and what should we do in this situation ?
I think that the market will still go down according to the technical analysis that I talked about earlier( double top+ false breakout+diveregnece) but the market doesn't know me and it does not care about my analysis.what we know is that the market is at a very important levels so there will be three scenarios :
1- The market will bounce from the support level and continue going up (here we have nothing to do )
2- the market will break strong the support level ( here we can take a short entry)
3-The market will retest the trend line and gives a bearish signal so we can enter after the breakout of the support level.
WHAT DO YOU THINK ABOUT MY IDEA PLEASE COMMENT AND LIKE TO SUPPORT ME