USDCAD 240 min Short. CCI lessons on end of continuation
The apex of triangle on CCI is below zero, favoring down. The move continues down from the previous CCI short signals. Because there is now a CCI divergence, two new things may be on the horizon.
1) at some time, the price is likely to be revisited where it was when the CCI low prior to the divergence occurred.
2) normally a CCI divergence occurs before trend can change direction. CCI now has a diver, but before the price turns up, usually price needs to retest the low or drop lower. The only exception to this is if CCI spurts north so fast that it crosses up thru the zeroline before pulling down a bit
Direction change to Long requires what is described in 2) above, and requires a CCI crossing up thru a down-trendline and moving above -100.
1) at some time, the price is likely to be revisited where it was when the CCI low prior to the divergence occurred.
2) normally a CCI divergence occurs before trend can change direction. CCI now has a diver, but before the price turns up, usually price needs to retest the low or drop lower. The only exception to this is if CCI spurts north so fast that it crosses up thru the zeroline before pulling down a bit
Direction change to Long requires what is described in 2) above, and requires a CCI crossing up thru a down-trendline and moving above -100.
Comment:
Perfect demo evolved as described, dropping 250pips more before price could move up