How to find Imbalance on a chart– Supply and demand Indicator
It has been quite a busy week but at the end of the week as it happen mostly on last trading Friday of the month and last day of the week, currencies starts moving erotically and usd/cad was no different.
But what different has happen as it was on the cards and when you spot smart money around you can expect movement in every correlated or non-correlated assets class pair and as Canadian dollar is directly correlated with Crude, whose downside pressure was on the move suddenly we see profit taking and GDP numbers from US and Canadian Area was surprising factor in the overall context and hence strong movement was already witness on the chart.
Ways to find Imbalance on the Chart
As you all might wonder, what is imbalance and I have stated it so many times in my blog Articles that strong trend reversals out of nowhere and then minor bull bear fight to move the price is the “Imbalance”, area on the chart and we all must eye such locations and canadian dollar recent up down movement was a great clue of something will give away at some point and today was the day.
IF you see the chart clearly I have mention two areas where strong set of orders are seen after price make a new high and fail to hold on those highs are first clue of collecting all the buy orders against the big sell orders and this week new multi month high was no different as price engulf that with pressure and after that you just have to find the approach to supply and QM area to short and where risk to reward should be atleast 5-6 times but pair has fallen more than 150 pips so that rewards was never expected.
