Prime reason for this article is to let everyone of you understand what is true trend and How we can wait for pullback and continuation signals when there is imbalance in that true or strong trend which carries momentum.
Few Basics of Strong Trends
* Trend must be strong enough for you to look for pullbacks and confirmation entry
*Entry should never be aggressive or conservation
*Price Must have strong imbalance between swings (Will be discussed in detail later)
*Active session breakouts should remain well-balanced in Strong Trends
*Any strong rally against the trend must be rejected strongly off Imbalance Areas
*Must wait for session breakouts after strong rejection and pullback to test that breakout when session resume trading
These all are basics of true trend and with a live example of crude I will discuss each and every step with examples in this article.
Trade Recommendations for next week
Usd/cad is in strong downtrend and we have consolidation after strong downtrend on hourly chart and Now as 1.3465 area is strong imbalance which is retest and selling continues till the day end I would like to see a move towards 1.3210-20 area.
Stops must be place 1.3340 which gives him some strong potential or You can simple look for retest of 1.3335 levels and look to trade rejection which will shorten you risk and potential of reward is much than it is right now
