This week, 13th to 17th Nov 2017 USDCAD gives a very good chart to explore trend lines and price channels. Let us see the details.
Daily chart of USDCAD
In daily chart, you can find the trend line is perfectly followed by the price. It has acted as bouncing pad for price. It bounced second time from the lower support trend line.
4Hour chart of USDCAD
After finding out direction from higher time frames, we do follow 4 Hour time frame chart to time the perfect entry. Lets see how the price behaved in 4H chart.
See, at the bottom where the support trend line goes through, we surely expect a price action behavior at this area. It exactly followed our expectation with a small pin bar and a big bullish engulfing candle.
See the candles in details.
See there was minor pin bar, then a strong bullish engulfing candle. Also all the candles are perfectly aligned with support trend line. The good entry point is just after the engulfing candle.
With proper understanding of trend lines, price channels and price action behavior, you can easily make good trade decisions. If you follow the basics of any trade, you don’t need to worry about the outcome in long run.