In this solo market‑analysis video, Rally Academy analyst Simon Alagbe walks through a USD/CAD chart to locate a trading opportunity. He first highlights recent high and low points, then identifies a historically strong line that has acted as support and later as resistance, establishing a key support zone around 1.3989. To confirm the bearish bias, Alagbe adds two moving averages (8‑period green and 21‑period red) and explains that when the longer‑term (red) MA leads the shorter‑term (green) MA, a sell signal is generated, reinforced by bearish candlestick colors. He then outlines a concrete trade plan: place a pending sell‑stop order at 1.39890, set a take‑profit at 1.39460 (≈44 pips) and a stop‑loss at 1.40793. The video concludes with a brief encouragement to traders to profit from the setup.
Chapters
Good day, my name is Alagbe Simon, a market analyst with Rally Academy. Today we'll be looking out for trading opportunity on USD/CAD. Let's take a look at our charts. Okay, then on the market watch, we pick USD/CAD chart window. So this is, um, the USD/CAD. Okay, so we go to our templates. And then we had our green and red strategy to the chart. Okay, so let's zoom out a bit. Okay, so looking at this chart, you'll be able to pick out some very key points on this instrument. The first one, we can see that the instrument respected this point, that's the recent high, and then the most recent low on this instrument is around this region. So looking at this particular line historically, let's see if it is actually sending a message. So looking at this line historically, you can see that it's a very strong line which happens to be a support at at this point and then turned to be a resistance at this point. And then this particular line also has actually been a very strong support line for USD/CAD historically. So let's return to the most recent point. So looking at this setup, this particular setup is showing to us that this time we should be looking out for opportunity to sell USD/CAD from around this region to this support level. So this is a strategy, and I would also like us to use our strategy to, um, authenticate the sell opportunity we are seeing here. I want us to use the moving average cross. So we need to add moving average to this chart. So we go to the indicator list, we move to Trend, we pick Moving average. So we start with 8. So we leave the color as green and then we click on OK. So we have this particular moving average period 8 added to our chart. So we turn back to the indicator list, we go to Trend, we pick Moving Average, but this time around we're adding period 21. So this color we would be red. So type in red and the color is red. So we click OK. So how do we use this particular strategy also? Okay, so looking at this strategy, um, we'll also be able to see that whenever the red line is leaving, like what we had right from this point, when this 2 moving average at the cross. Yes, this point where they crossed up to this point where when we had another cross, USD/CAD was trading bearish. And based on the colors of our candlesticks too, we know that whenever we have the red colors we are looking at a bearish candlestick. So also, whenever the red line or the red moving average, which is period 21, is leading, as we can see here, we'll be looking out for opportunity to sell. And if it is the other way around, also whenever the green is the one leading, we should also be looking at opportunity to buy. So we can see that playing out, uh, though just few pips here also. So we had the cross, and up to this particular level, one could have also made some money off this buy. So now that we have confirmed that USD/CAD is giving us a signal to sell, so what we just need to do is to pick our entry point. So from the low of this last candle, so we can just have this point, which is the low of this current candle, up to this support level. That's around how many pips there? Around 40 pips, 44 pips precisely. It's not too bad to make from this instrument. So let's go to a new order, go to new order. And because the instrument is not currently trading at this price level, so we would be using a pending order. So go to pending order and then we insert this price level, 1.39890. So once we have done that, we click on buy— sell stop. We need to change that also. We're looking at a sell stop trade because we're expecting USD/CAD to get to this point and then to continue to trade bearish at least up onto this particular support level. So we click on place. So once we have that in place, anytime USD/CAD is able to trade up to this point, then this sell stop trade will be turned to a sell trade and, uh, we'll be expecting it to continue to trade bearish up until this point so that we'll be able to close our trade in some level of profit. So I will right-click on this trade, this pending order trade, and go to modify or delete order. Then I will type in the take profit, which is this price level. The take profit is 1.39460. 1.39460 is my take profit, and then my stop loss will be at 1.40793. So let's also add that, 1.40793. So we've been able to identify those 2 crucial points for USD/CAD. So modify. So I trade this up expecting USD/CAD to take trade bearish from this price level and then give us profits at this time. Thank you very much for listening. Do make some profits off USD/CAD today.
