EURCAD M5 – Failed short trade

2015-09-16 19_59_53-EURCAD,M5

What was wrong in this trade?

  1. Background is strong. If the background is strong we have to be ready to open a long trade, not short.
  2. Price was too far from resistance level. Good entry for short trade – when we have supply near resistance or trendline.
  3. This is bullish volume – wide spread up-bars on high volume. It is confirmation that bullish trend is still in force and it is too early to go short.

What was right?

  1. This is a weak signal (supply) before the trade was opened. It means that there is imbalance between supply and demand in favor of supply.
  2. Dynamic trend turned from green to red.

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