Dislikedhi HDA,
when u say eur/cad is predictible, what do u think we shud look in to predict ? the h4 time frame.and fundamentals ? right now its giving mixed signals....what do u reckon?
thanx alot
ASHIgnored
To trade the EUR/CAD - you need only to focus on two Time Frames - The 4H and the 1D.
The 4H is used for entry and to make not of a change in direction.
The 1D is used for trend direction.
So the first thing you do is go to your daily chart and ascertain what the trend direction is - once you have done that then you go to the 4H to look for an entry to enter long or short depending on the direction of the daily.
Currently - the 1D is saying the trend direction is down, so you look to the 4H for sell opportunities.
On your 4H chart you will draw the support and resistance lines on the 4H and colour code those lines (BLUE) or whatever colour you like.
On the same 4H chart put also the 1D support and resistance lines on the chart and colour code those (YELLOW) or whatever colour you like.
The reason for colour coding the 4H differently from the 1D is so that if you only have 1 screen, you dont have to be switching between windows to look at the different TFs - Everything that you need to know will be on one chart for you to see at the sametime and also during high volatility we tend to get stuck looking at one TF and are unaware of what is happening on the larger TFs. So suddenly there may be a retrace and you are like - WTF only to not have seen that the market reached a 1D support or resistance point.
Having done that, at every 1D support and resistant point once the market gets there close your trade. On the EUR/CAD ALL 1D support and resistance points are respected. Thats why it is so predictable. So you know for a fact that you must exit, once it reaches the 1D support and resistance points.
Knowing this makes trading against the trend very very easy - once you reach a 1D support and resistance point close your trade and you can if you're greedy, close your trade and enter in the opposite direction for 20 to 40pips to be on the safe side.
It does not mean the trend direction has changed, you are just swing trading, that is buying support and selling resistance.
This is as clearly as I can explain its predictability, I hope I have managed to answer your question.
Respectfully,
HDA