How to trade USDCAD

hello welcome everybody my name is Shu

Quan and we are going to be going over

how to trade the USD Canadian dollar

pair so in this video what I'm going to

go over is some analysis but also to

show you how usd/cad moves okay so when

it comes to trading it's important to

understand that every pair does not move

the same some parents move faster than

others some parents move slower than

others some parents have more risk some

have less risk attached to the bouquet

but how would you know unless you you

know kind of backtest or trade the other

pairs you really want sometimes we want

to stick to just one particular currency

pair or just you know just pick one out

of the bunch but there are so many great

trading pairs and sometimes you just

need to know how they move so that's

where I come in I like to back test a

lot of pairs so I can see how they move

so I can see which ones work for me

which ones I like which ones will do

well with my training methods and my

trading style and then I got to come and

share this information with you guys so

that's where this comes in how to trade

a particular currency pair I've done

pound USD so far I mean there's one to

prepare that I've done you consider my

youtube channel as well but yeah so

recently was pound us Dina I also did

you know I put that video on my

Instagram at SL f X underscore trading

and now I'm going to be doing it on this

particular currency pair usd/cad other

currency pair did was euro USD just

because the way that currency pair moves

but without further ado let's go ahead

let's get into this video okay so

usd/cad what can I say about this pair

first this pair correlates with oil

now I'm not digging correlations but I

do understand that when fundamentals

come out the correlations are when most

other pairs seem to be moving and

confluence with one another right they

move together so if oil goes up then

that's going to affect the cab which

means the cats going to get stronger

which means this is gonna drop against a

dollar right so we'll see the dollar go


because the cat is going up but if the

cat gets it the oil gets bad news then

that's kind of bad for I think I said

that backwards so what happens is if cat

if oil what happens is if oil gets good

news what we'll see is the Canadian

dollar will get stronger

which means this primacy of negative

effect but if the Canadian or the oil

gets bad news what we're gonna see is

this Pierre go up so that's kind of how

you have to think about these parrots

right now for me personally I'm not a

big fundamentals person I don't really

care what other parents are doing it

could force one another because

technical analysis we kind of tell you

what's about to happen next right I can

prove it because I'm going to show you

how this pair moves okay so let's go to

the weekly timeframe so what you'll

notice about this weekly timeframe is

this although this trendline here does

not really matter right now what you're

gonna notice is this pair right now if

we were to look at it from this

perspective you can see that we're

actually pushing down right we have a

lower high lower high here right we have

a lower low lower low here if you know

anything about trend this was the last

higher low this is a lower low lower hi

Laura low okay so this is a proceed

lower high because as long as we stay

above this high here well guess what we

are actually still in a downtrend when

it comes to the overall trade and market

movement we have to understand how

market trends which means this full area

is a counter trend trade which means

this whole area is to retrace me because

we're making lower highs now so if price

pushes past this area then guess what

we're going to be perceived as now am

bullish territory so we just kind of had

to see what's about to happen for this

pair we're still pushing up strong

which means well this retracement is not

over with yet until we break this area

here or on the weekly timeframe on even

the daily timeframe which every one

comes first what you'll see is right

here we're retracing and so we're making

higher lows higher low

higher low higher lows but if we drop

and push past this higher low well then

more than likely we're gonna be able to

continue down but when we got that in

lourdes high frames nothing about what I

said has changed it's just that now you

see more candles so this is multiple

time frame analysis how I just went from

one time frame down to another time

frame or from one time frame up to

another that's multiple time frame

analysis and I'm finding that a lot of

traders are getting this confused

because they're usually supported

resistance huis tops price within its

areas you can't see past support and

resistance and so what happens is most

traders are getting like kind of held

back because of supporting resistance

now don't get me wrong I still use it

but I use a different form of supported

resistance and I call that my estimation

zones I may or may not drop her course

over it I may kinda keep it to myself

it's just gonna depend because it's

nothing personal to me something I've

been using it's more accurate that's

important resistance where I don't want

to happen inside each it someone takes

it and starts to teach it because it's

that powerful so you know I just chill

on it for the time being but this is an

example of my estimation zones now it's

it's not based on support and resistance

I'm gonna say it again it's more so

based on candles and I don't have it on

here as accurate as I would like to for

certain reasons but it works out really

well ok so anyway with that being said

just watch how this plays out right so

remember I just said that we in a

retracement mode but let's look at price

action right now now i strictly trade

from the daily time frame for the time

being because I'm looking to swing trade

more I'm looking to hold my trace out a

lot longer and take quicker profits in

between so I like to swing trade most

people out today trace cap whatever

works for you right there's no

one-size-fits-all in this market but

there's this big misconception about

swing trading that I want to kind of

take away from out of the presence of

people's mind number one the myth of

swing trading is people think that you

have to have this huge account or you'll

hold your trades out for all this

periods have known oh yeah I can hold a


I'm here to hear but they still take

trays in between as well you know

there's ways to get these movements here

in the market and take profit within

like two or three days you don't have to

hold your tray from here to here just to

take profit we trade you just like

everybody else as a matter of fact if I

didn't tell you that this was a daily

timeframe would you even know what

timeframe this was even if I didn't show

you the pair could you still tell me the

pair no my mentor teaches me that price

is an illusion which I'm finding to be

more true the more that I trade if I

told you this was a one minutes high

frame could your still trade it as if

you're trading any other time frame the

answer is yes so take its higher frame

out of your mind and just focus on the

knowledge right but because I said I

wanted to get high frame we're gonna

look at it alright so with this currency

pair what you'll notice is price action

I'm big on price action because price

action tells us where price is going to

next right if you could see a mustache

trendline we had a spinning top a

spending bottom and then we had this

nice and breaded hammer we're told this

practice getting ready to push up price

pushes back down we have a lot of

rejection wigs which tell us which is

which tells us price is getting ready to

push back up so what do we do we trade

it back to the upside right price pushes

up into my estimation zone and look at

all this price action we're having a

hard time pushing down from these areas

price keeps rejecting rejection

rejection rejection rejection all of

this rejection these wigs price can't

close below this area what does that

tell me we're getting ready to push up

why are we getting ready to push up

because that's where the market is going

to next so within this area here are

thousands and thousands of traders right

you got the day trader two scalpers the

swing traders so forth and so forth and

so on but what happens is with the way

this pair moves if we just go back in

time in history what you notice is this

pair moves like this so let me get under

the tool up to show you how this fare

moves this pair moves a lot like this

very sporadically as you guys can notice

here you'll see that price and move up

and down up and down

this is choppiness up and down a lot

more choppiness you can see how here in

have a higher high but price keeps going

down and creates a high a lower a little

right and we just keep pushing it down

right and then this is choppy choppy

head and shoulders here we push down to

consolidation we break and this pair

just really moves the way it really

wants to move right we see it again here

a lot of volatility within this move so

this lets me know that this is a very

very choppy pair it could be because

there's trading with oil because we all

know that oil you know it really moves

with this currency pair because of the

Canadian dollar so that could be a main

reason why this pair moves so choppy and

then it's mixed in with the dollar index

so the dollar straight up and down up

and down up and down so you got an

industry and the commodity that's moving

this currency pair so it's moving it

very very in a choppy like style

sometimes it's trending sometimes it's

messy some and a lot of times we're

gonna range right we're in a big range

here a big uptrend it on the daily

timeframe I'll bet this retrace me a

really big ranging market you know and

we range within the range so you kind of

have to really focus on how each pair

moves because that's gonna teach you how

to train it and you know within this

next real movement and you have to

really focus on those key opportunities

in the market right so it doesn't matter

whether you're a swing trader day trader

scalper position trader it really

doesn't matter what minutes is your

knowledge of how you trade it so let's

talk about it from here so here we had

this nice rejection counter that pushed

up a nice another addition Canada told

us press is going to push up I don't it

doesn't really matter it's news or

whatever the case may be the daily kept

telling us what was going to happen for

the days to come or the next day and as

you can see well look what happens we

have here just in this area here and

this is following trend right we have a

higher high higher low because here we

were making we had a lower high a lower

low Laura a hi Laura low lower high

right we don't make a lower low but it's

that price comes and it makes a higher

high this is the perceived higher low if

we break this higher height

point right here and if we break the

tire higher point with this one guys

we're gonna be pushing up higher

possibly right back up here into this

range between one point three six

thousand one point three five of 500 and

it's not to say Oh your price has to

come here no price could get there

we don't know where price can go to next

we can only wait to see if it's going to

be that we need confirm movement so

speaking of confirmation and confirmed

movement here's how we could get there

so I'm gonna draw a trend line going

down right as you all can see price is

breaking out but we need something to

happen before we can just say buy what

we need to see is we need to see a price

is gonna stay above this ranged area

because one of the two things can happen

from here one or two things can happen

what could happen is price could break

out push back down to retest the

confirmation area and then we could push

up higher

that's the possibility or price could

just drop from here back down into our

structural areas in trend line so one of

those two things can happen why do we

trade it this way why do we train like

this and I get people who say I know how

to you know do the breaking retest but

I'm getting stuck on where to go to next

even if I were to drop down to my four

hour time frame I'm still waiting on the

same rule even if I were to drive down

to my one hour time frame still waiting

on the same rule my five minute 15

minutes still waiting on the same rule

no matter what time frame you are

trading the same rules still apply the

only difference is you have to be

careful because this 501 in 15 minute or

the one hour wick right here there are

this one hour that use this wick that

you see could be the one hour five

minute 15 minute playing tricks on you

and price continues down these wicks

here the all of these wigs are still

candles on Lorde's hi Frank one hour 30

minutes 45 minutes 15 minutes five

minutes but overall price still pushes

down so what actually happened with a

lot of traders is they do this so

they'll say okay this is supporting

resistance but on the Lord time frame

the five minute 15 minute when I

possibly it'll look like because we have

this wick it could be a bearish

engulfing candle or a rejection candle

hammer whatever and they'll say okay

we're about to move down but what

happens is or we're about to push up but

what happened you know about so what

happens to this they'll say we're about

to move down but what happens is price

ends up pushing right back up because

you have to be careful when you're

training loads high frames you get the

most fake outs on the lower time frame

but what it should be notice is if we're

still in this uptrend right right here

if we're still in this trend hand is

pushing up anytime you trade against it

without a confirmed trend movement to

the opposite side the reversal you're

always gonna be on the opposite side of

that trading pair that currency so

that's what gets a lot of traders in

trouble because they're trading the

Lord's hyper I mean nothing won't turn

the lords high frame you just need to

know how to make it work for you whether

you're the trend trader or the counter

trend trader you have a lot of

professional counter trend traders out

there a lot of professional traders not

that you have to pick one other other

it's just that both have their pros and

both have their cons but you gotta see

which one has more of the cons that will

be the counter trend so that's what you

always have to be careful when it comes

to trading these currency pairs okay I

always be careful when it comes to that

counter Tran movement

so speaking of we're gonna stick with

the trend on this one now tomorrow it's

going to show us more of what could

possibly happen because of this wick

because we're here on this trend line

what could happen is we could see

rejection from this area and we could

fall but we could still because we are

pushing up and the perceived high could

actually come because this pair is still

in retracement mode we don't know how

much higher this pair is going to go but

you still have to trade with the

direction of price action and right now

price action is telling us we're in the

bigger retracement we're in this channel

and who knows like this previous lower

high could be taken out we don't know

that which is why we're waiting on a

confirm on a confirmation right here in

this area to always wait for the

confirmation if you don't take anything

away from this video on any currency

pair especially right now because of how

we're trading wait for the confirmation

I can show you guys another reason why

I'm saying wait for the confirmation we

could use the same example from where

price action was here alright we got a

break in a retest in this area here okay

breaking the retest price breaks this

area now if you bought them here you're

not wrong because there are people who

just trained breakouts but they don't

trade retest but what what happened is

you don't know how far down this pair is

going to go so what happens if you put

your stop-loss

too close and you get stopped out for

those who use stop losses because there

are people who said you stop losses so

if you're using the stop-loss and you

put it too tight because people put

their stop boxes this tight sometimes

you're gonna get stopped out and then

price goes your weight and it could

possibly hit your take profit list if

you had your take profit right back up

to the previous high here right so when

this bullish engulfing happened that was

your entry candle but you couldn't miss

out on some profits this is the break

and this is the retest so this is why

it's important to always wait for those

breaking those retest wait for price to

give you that confirmation because those

confirmations give you better entries a

lot of times and it tastes the guessing

out of your trading so you just have to

be patient when it comes to you know

trading these currency pairs always

always always be patient okay if you

don't take anything else away from this

video take this major key factor okay to

be patient let the trade come to you and

now dinner wit fundamentals on this pair

again like I said you can be in before

fundamentals happen because this could

have been fundamentals that could've

been fundamentals this could have been

fundamentals especially when NFP comes

because sometimes you have traders who

are afraid of enter people or you have

trainers who are afraid with high news

hits that's not the time you want to be

scared especially dealing with oil and

the downturn news or whatever the case

may be that's not it's time to be afraid

of fundamentals that's the time to trade

alongside with it not me in particular I

don't look at

fundamentals but I would rather be in

the trade from likes let's say for

example this area here before these

known candles hit and then I have to go

and try to fish out my entries I rather

being a tray from here before I have to

fish out my entries after long volumous

move like this so you gotta think about


nose pushes price I know this was news

here as well this happened March 1st so

this was a really nice movement that

happened and guess what I was in from

this area here why because the daily

timeframe told me hey we got a lot of

rejection we're about to start pushing

up so these are the kind of key factors

you have to focus on especially when it

comes to USD K because the commodity

because it's written all tight with the

commodity and then with an indices and

then you know you have a Canadian dollar

alongside with it as an individual

currency pair so you kind of have to

think about these things when you're

trading this particular currency pair

it's gonna push that at times it's going

to range but when it gets done ranging

is going to push all right so for

example if we do get a nice confirmation

in a breakout this thing could push

right back up into this area here if we

get more rejection we could get

follow-through back to the downside this

is all about patience well we'll say

woman you see this one last factor about

this pair though to be careful we're

gonna channel that pushes up this

channel typically breaks out to the

downside if you don't believe me we had

this same channel that was pushing up

here as well and guess where it broke it

broke out to the downside do you not

think that this same thing could happen

here there is a possibility that this

could happen there's a possibility that

this could happen but we have to wait

until it breaks out we have to see if

it's going to happen we don't want to

trade it before it happens we need to

wait and see if it's going to happen ok

so that's how I'm looking at the USD

dollar for future movement and then you

know just to see what's happened in the

past and how to trade this pair and how

this pair particularly moves you know

just to look at it from a few different

angles and perspectives ok I hope you

guys enjoyed this video I hope it bought

some clear

to you when you're trading this currency

pair don't don't forget to hit that

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