GBPCAD: Buying Opportunity Against the Daily Chart

13 Jul 2020

If we use only the 1H chart, we can see that the market gives us an amazing buying opportunity. The price reached SMA100 and we have a reversal signal which can be used for buying. Here is an example of a possible long trade with the stop below SMA100 and the local swing low and the profit target at the resistance level. The idea of the trade is simple. The market is moving up in the bullish trend. We have the price reversal, which tells us that the correction is over, and the market is going to continue the uptrend. RSI and MACD support buyers as well. Everything looks great! By the way, you can see the same trade opportunities in the past. They are based on the same principles.

There is only one problem. The daily chart gives us a reversal at SMA, and it is a bearish signal. If we look at the daily chart, we would like to search for selling opportunities in the hourly timeframes. For example, we use the 1H timeframe and a breakout below SMA100 as a selling signal.

Here is a good example of how the same market and timeframe can provide trade opportunities for buyers and sellers, and both trading ideas can be profitable.



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Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.