EUR CAD reversal forecast
Ok, let's have a look at the Daily chart and see if we can forecast a reversal point, it's obvious that reversal is coming, but when exactly?
First step. Let's look at the previous swing points. They are previous high 5190 approx and 4441 low. Plug them in my equation for forecasting trend exhaustion, we come up with:
Ok, that's a start. 5432 is pretty close to current trading ranges.
Second step.
Let's look at price action structure on daily. Let's assume there is an
AB=CD bearish reversal structure in making. Then point A is 4175 point B is 5190,
we subtract A from B this results in 1015 pips range.
Ok, now point C is 4446. We add 1015 to 4446 and this results in 5461, which is also close to current trading range.
Conclusion. Let's look for a reversal in 5440-60 area. Look for a valid pin bar setup on H4 or D1 charts and look to initiate your shorts soon.