Thursday, 11 December 2014

The W formation

This USD/CAD weekly chart highlights a good 'W formation', which is a technical analysis term.

It shows some of the key price action that can help your decision-making- namely the retest or bottoming action. Price usually takes two or three pushes at a low level before a bottom is in. In this case, the break above the near-term bounce resistance opens up a move to 1.3000 on the pair over the coming weeks. 

This would be the initial idea, which can then be used to consider the best entry point.

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