USDCAD - Bullish Bat Pattern
Updated
Following the break below 1.25100 and the invalidation of the Cypher pattern we had lined up, we now have a bullish Bat pattern completing down at 1.24600 on USDCAD.
As this is technically a counter-trend trade we will be looking to take conventional targets at the 38.2 and 61.8 Fib levels should an opportunity to go long present itself.
All the best,
Mase.
As this is technically a counter-trend trade we will be looking to take conventional targets at the 38.2 and 61.8 Fib levels should an opportunity to go long present itself.
All the best,
Mase.
Note
We have received a comment on our previous USDCAD trade plan asking what to do now that price has broken down and invalidated that particular pattern. The short answer is WAIT.Give yourself time to study the price action and the reason for the breakdown. Why is your trade plan now not going to work out? In this case it was news related to Jackson Hole.
So now we create a new trade plan based on the current price action. Price is moving down and has broken structure, so we are looking to short at the next opportunity. Hopefully this trade plan will help visualise our process to coming up with an entry into our positions:
Note
Alternatively, looking closer we have a perfect Bearish Gartley setting up exactly at a 38.2% Fibonacci retracement of the large swing down.We also have an equal measured move (ABCD Pattern) completing at the blue line, and just above this level is the structure zone that we've already pointed out that should act as resistance, offering our trade protection.
Trade closed: target reached
Congratulations to our clients that have taken 190 pips off the table at 2nd targets this morning for a fantastic 3.2:1 Reward to Risk trade.A quick look at USOIL suggests that this pair has more upside left in it so instead of taking our second targets, we have rolled our stops up to try and profit from a longer term move north.
Note
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