Hi,
I have attached USDCAD 1H chart. i made comments on the chart itself for my analysis.
I basically marked demand zone on the bullish candle before the move up, does the size on the most recent candle matter because i see on this chart this candle is so small.
Best regards.
My Response:
Your analysis looks sound to me…
(Update: Check out my new supply and demand zone drawing guide for more help on drawing zones)
The price rise is likely due to either profit-taking or banks executing trades, thereby creating a demand zone. Upon seeing this, you marked the region as a demand zone, waiting for the price to revisit. The idea being, there’s a high chance of banks wanting to secure more profits from their trades or place additional ones.
The drop into the demand zone was a deep pullback, which the banks employ to prompt a mass of traders to enter counter to the direction the banks want the price to move.
When sufficient traders have entered, banks step in and execute more buy trades.
This is primarily responsible for the ongoing upward price movement.
Your trade execution was excellent…
Keep up the good work!
Have a great week!
PAN.