The speaker analyzes the market using the Breakout Buddy indicator for odd CAD, starting from the highest time frame down to the daily. By doing this, the speaker can determine the overall market direction and find key levels for potential buys or sells. Though the overall trend is down, the speaker notes support at the weekly level and suggests entering a long trade if the price crosses the line to the upside. The indicator is easy to use and available on the speaker’s website for $99.99.

Breakout Buddy Indicator: Top-Down Analysis on AUD/CAD

Introduction

In this article, we will be discussing the Breakout Buddy Indicator, a powerful tool for identifying potential breakouts in the market. Developed by Super Trend FX, this easy-to-use indicator can help traders make more informed trading decisions by providing a clear picture of market direction and momentum. In this article, we will be applying the indicator to the AUD/CAD currency pair and performing a top-down analysis to identify potential trading opportunities.

Starting with the Highest Time Frame

One of the key advantages of the Breakout Buddy Indicator is its ability to perform top-down analysis. This means that traders can start by analyzing the highest time frame and work their way down to the lower time frames to get a clearer picture of market direction and momentum. In this case, we will be starting with the yearly time frame.

Using the Yearly Level to Determine Overall Market Direction

While most traders do not trade on the yearly time frame, it is still important to know where the overall major momentum is in the market. By drawing a horizontal ray and adding the yearly text, we can see that we are currently in a selling territory as prices are under the line.

Moving Down to the Monthly Time Frame

Next, we will move down to the monthly time frame. Here, we can see that prices are above the line, indicating a buying territory. We will create a new line and save it as the monthly template for future reference.

Determining Market Trend with the Weekly Time Frame

Moving down to the weekly time frame, we can see that prices have broken to the downside, indicating a downtrend. By creating a new line and saving it as the weekly template, we can easily reference this information in future analyses.

Analyzing the Daily Time Frame for Potential Setups

Finally, we will analyze the daily time frame to look for potential trading setups. Prices have closed below the line on the daily time frame, indicating a downtrend. However, we are approaching a weekly level of support, so we will look for potential opportunities to go long if we see a break to the upside. Our first target would be a 160 pip move to the upside.

Breakout Buddy Indicator: A Simple and Powerful Tool

The Breakout Buddy Indicator is a simple yet powerful tool for traders looking to identify potential breakouts in the market. By performing a top-down analysis and using the indicator to determine market direction and momentum, traders can make more informed trading decisions and increase their chances of success.

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