EURCAD M5 – Failed short trade
What was wrong in this trade?
- Background is strong. If the background is strong we have to be ready to open a long trade, not short.
- Price was too far from resistance level. Good entry for short trade – when we have supply near resistance or trendline.
- 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?
- 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.
- Dynamic trend turned from green to red.