News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Fed's Brainard: - Valuations "are elevated in a number of asset classes relative to historical norms" - Variety of risks related to the virus could result in a sudden change in investor risk sentiment #Fed $SPY $QQQ
  • Fed's Brainard: - Pandemic showed flaws in financial system - Need to consider reforms to protect against future shocks #Fed $USD
  • Fed's Brainard says stress that emerged in treasury markets may suggest need for standing repo or other changes
  • BoE's Ramsden: - Contingency planning is very different from thinking negative rates will be used - We want to be in a position that if things don't improve like our forecasts say, the tool of negative rates can be feasibly used if necessary #BoE $GBP
  • Heads Up:🇺🇸 Fed Brainard Speech due at 14:05 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇺🇸 Fed Williams Speech due at 14:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-03-01
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.84%, while traders in France 40 are at opposite extremes with 67.81%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xGzM0SUjeR
  • LIVE NOW: Join Technical Strategist @MBForex for his Weekly Strategy Webinar to review the setups we're tracking into start of the week / month! https://t.co/chKtG7waxH
  • wrote up the $Gold forecast for this week, a major level already in-play ~1725. #NFP the big item on the calendar, but lots of space on the chart until Friday https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2021/02/27/Gold-Price-Forecast-XAU-Tanks-Hard-as-Yields-Inflation-Fears-Climb.html https://t.co/xrlEzFbspb
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.58% 🇦🇺AUD: 0.46% 🇳🇿NZD: 0.22% 🇪🇺EUR: -0.16% 🇯🇵JPY: -0.16% 🇨🇭CHF: -0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0epJpm4UcD
USD/CAD Identifying the Trend

USD/CAD Identifying the Trend

Walker England, Forex Trading Instructor

Trend identification, is the primary step for directional traders upon viewing any chart. Today we will begin our analysis of a USD/CAD 8H chart. We can see that the pair created a low on July 24th at .9406. The pair continued higher until December 4th which posted a price at 1.0657. Twenty-five days have passed since this high has been created. The key part of an uptrend is the creation of fresh highs, many traders are left asking, “Where is the trend?” The answer can be found by blocking your chart off into smaller segments.

USD.CAD_Identifying_the_Trend_body_Picture_1.png, USD/CAD Identifying the Trend

One method of trend identification I prefer utilizes a 30m chart. Each block can be drawn by marking off Sundays and Wednesdays using the vertical line tool inside of Marketscope 2.0. Once your chart is blocked, it is key to begin using price action to looking for relative lows and highs. An uptrend should consistently be making higher highs, and higher lows. Conversely, a downtrend should create lower lows and highs.

USD.CAD_Identifying_the_Trend_body_Picture_2.png, USD/CAD Identifying the Trend

My preference is to trade the USD/CAD only when two blocks of market data gives a clear market bias. Meaning in an uptrend, there should be one week of trading data, pointing to the up or downside. At the present the USD/CAD is concluding the first block of a down movement. Using the steps above, we should wait for Sundays open prior to considering short positions.

Trading using the blocking method has the ability to help us avoid and manage potentially damaging short term market shifts. Patience is important, but once a trend is found we can use our market bias to trade the method of our choosing.

Additional Resources

Fractals

Where are the trades

Setting Trading Expectations from Daily Chart

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES