USD/CAD -28/11/2023- Application of ATR
∙ Average true range is a volatility indicator
∙ Low readings or declining ATR line shows that volatility is shrinking and the price is in a consolidation and implies a breakout or higher volatility ahead
∙ The Canadian Dollar is trading lower benefiting from a weak US Dollar but still within the 1.33-1.38 range that is holding for more than a year (since September 2022)
∙ Meanwhile, the ATR kept on declining for the year confirming the consolidation phase
∙ Bulls attempted to break above the symmetrical triangle but failed to build on gains and the price is back within the triangle
∙ Potential triple top at 1.380-1.3850
∙ Traders are advised to step aside for the moment and not anticipate the breakout which can happen either way
∙ Low ATR value combined with a stretched triangle imply that the breakout is near and can be a big one
∙ Low readings or declining ATR line shows that volatility is shrinking and the price is in a consolidation and implies a breakout or higher volatility ahead
∙ The Canadian Dollar is trading lower benefiting from a weak US Dollar but still within the 1.33-1.38 range that is holding for more than a year (since September 2022)
∙ Meanwhile, the ATR kept on declining for the year confirming the consolidation phase
∙ Bulls attempted to break above the symmetrical triangle but failed to build on gains and the price is back within the triangle
∙ Potential triple top at 1.380-1.3850
∙ Traders are advised to step aside for the moment and not anticipate the breakout which can happen either way
∙ Low ATR value combined with a stretched triangle imply that the breakout is near and can be a big one
Ramzi Abou Abdallah, CFTe, CMT
♦️ Subscribe to my telegram channel for daily signals for free, link below:
♦️ t.me/accu_trading
♦️ Subscribe to my telegram channel for daily signals for free, link below:
♦️ t.me/accu_trading