USDCAD Insight

Personality Traits of USDCAD

Sideways Market: In USDCAD, it's common to see sideways markets where prices move horizontally instead of up or down. You can notice this pattern in every timeframe, and it usually happens after a big price swing. A simple way to spot these sideways phases is to check if the market activity slows down. Look for the last strong candlestick and use it to draw a box, indicating the range where prices are moving. This helps you identify times when the market is taking a breather and not making significant up or down movements.

Fig2.1- USDCAD sideways market

Strong Candlestick: I prefer to wait for breakouts in the market, but I'm cautious about potential fakeouts. To minimize the risk, I wait for the closing of a strong candlestick before considering any trading decisions. This approach helps ensure that the price movement is not just a temporary fluctuation but a more sustained and reliable trend.

Fig2.2- USDCAD breakout entry