USDCAD has retraced almost back to Daily Support and is balancing just ahead of the Support Zone. These Balance Area's make for good Breakout trades. Balance areas are simply just Accumulation or Distribution (we don't know which one it is until the market tells us, which is done by breaking out).
This trade will be valid which ever way it breaks. I would think a breakout to upside would gather the most traction but you never know!
RSI is starting to give a clue by showing some Bullish Divergence. Although, this is not a signal to enter the trade for me.
Entry - I use a Break & Close out of the Balance Area for my entry.
Stops - I use 1 ATR Above or Below the Breakout Bar.
Target#1 - I use a measured move of the Balance Area (Blue Line).
-For the Upside break, Target #1 has confluence with Structure and a 38.2% Fib Retracement from the highs.
-For the downside break, Target #1 is simply just the measured move.
Target #2 - I use the next Major Fib for Target #2.
-For the upside break, Target #2 has confluence with Structure and the 61.8% Fib Retracement from the highs.
-For the downside break, Target #2 is simply just the 1.618% Fib Extension.
Best of Luck!
This trade will be valid which ever way it breaks. I would think a breakout to upside would gather the most traction but you never know!
RSI is starting to give a clue by showing some Bullish Divergence. Although, this is not a signal to enter the trade for me.
Entry - I use a Break & Close out of the Balance Area for my entry.
Stops - I use 1 ATR Above or Below the Breakout Bar.
Target#1 - I use a measured move of the Balance Area (Blue Line).
-For the Upside break, Target #1 has confluence with Structure and a 38.2% Fib Retracement from the highs.
-For the downside break, Target #1 is simply just the measured move.
Target #2 - I use the next Major Fib for Target #2.
-For the upside break, Target #2 has confluence with Structure and the 61.8% Fib Retracement from the highs.
-For the downside break, Target #2 is simply just the 1.618% Fib Extension.
Best of Luck!
Trade active:
Short from 1.4019
Comment:
Target #1 hit.. Stops moved to breakeven
Trade closed: target reached:
2nd half of Position was stopped @ BE