We have two descending wedges on USD/CAD across different timeframes:
H1: Clean falling wedge structure since March, price near the lower boundary.
H4: Same wedge structure, aligning with the larger phase.
FRL Entry Confirmation:
Following the Fractal Reversal Law (FRL), we do not enter immediately.
We wait for:
✅ A full candle close above the neckline of the local double bottom,
✅ Where the neckline on H1 aligns precisely with the 100 SMA.
This confirms phase reversal and removes noise, making the entry safe.
🎯 Targets:
1️⃣ 1.36676 – First take profit, retesting the neckline break.
2️⃣ 1.37914 – Mid-term target, wedge mid-level.
3️⃣ 1.38561 – 1.40155 – Full wedge top, long-term objective.
Why This Matters:
✅ Positive US unemployment data supports USD strength.
✅ The wedge is 3+ months wide, adding reliability to the breakout.
✅ Alignment with 100 SMA increases the accuracy of FRL signals.
✅ The trade offers a clear Risk/Reward above 1:2.5.
Trading is capital management under uncertainty.
The red horizontal zone is uncertainty; the neckline is the Rubicon where the market becomes clear. Don’t fear uncertainty. Wait for clarity.
H1: Clean falling wedge structure since March, price near the lower boundary.
H4: Same wedge structure, aligning with the larger phase.
FRL Entry Confirmation:
Following the Fractal Reversal Law (FRL), we do not enter immediately.
We wait for:
✅ A full candle close above the neckline of the local double bottom,
✅ Where the neckline on H1 aligns precisely with the 100 SMA.
This confirms phase reversal and removes noise, making the entry safe.
🎯 Targets:
1️⃣ 1.36676 – First take profit, retesting the neckline break.
2️⃣ 1.37914 – Mid-term target, wedge mid-level.
3️⃣ 1.38561 – 1.40155 – Full wedge top, long-term objective.
Why This Matters:
✅ Positive US unemployment data supports USD strength.
✅ The wedge is 3+ months wide, adding reliability to the breakout.
✅ Alignment with 100 SMA increases the accuracy of FRL signals.
✅ The trade offers a clear Risk/Reward above 1:2.5.
Trading is capital management under uncertainty.
The red horizontal zone is uncertainty; the neckline is the Rubicon where the market becomes clear. Don’t fear uncertainty. Wait for clarity.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.