Above is the previous potential signal that we sent out on USDCAD. Clearly you will see that it proved to be extremely profitable with a great deal of selling pressure coming into the market upon a break below the short-term up trend line. This type of trading, WITH the trend, provides high probable trading opportunities because there is A LOT of money behind trends. It takes A LOT of money to move a market in one direction consistently to form a trend, so to try to trade against such a market condition is highly ill-advised.
Again we will be looking to play USDCAD to the downside if we see a break below this short-term up trend. We will need to see confluence from our price action forecasting algorithm forecasting a move to the downside with a chance performance prediction of at least 85% as well. If we do see this set up occur then we will take a short position. The 1.27500 level may pose some issues for continued downward movement so it may be a profit taking level if price action begins to struggle to break down around that level.
Currently our forecasting algorithm is predicting some consolidation and then a move to the downside with a chance performance prediction of 93%. See the image below for the most recent forecast from our algorithm: [img]i.imgur.com/ZummeHI.png[/img]