USD/CAD LTF Trade Setup
Updated
On the 1 hour chart, after a HTF double top and subsequent CHoCH, we identified the Supply zone which was hit and that led to a bearish Break of Structure (BOS).
We now have an opportunity to enter a short position once price reaches the Supply Zone created by the most recent BOS. We will only take this trade if price reaches our supply zone with low volume – any strong momentum move upward will invalidate our trade setup.
We will take profit at the next Break of structure (prior to break as it is also an area of strong support) with a potential longer term Take Profit 2 below at an unmitigated demand zone.
Stop loss: Above LTF Supply Zone (Created by recent BOS)
Take Profit 1: Next Break of structure at 1.351 = 2.0 R:R
Take Profit 2: Unmitigated HTF Demand Zone @ 1.3388 = 6.9 R:R
We now have an opportunity to enter a short position once price reaches the Supply Zone created by the most recent BOS. We will only take this trade if price reaches our supply zone with low volume – any strong momentum move upward will invalidate our trade setup.
We will take profit at the next Break of structure (prior to break as it is also an area of strong support) with a potential longer term Take Profit 2 below at an unmitigated demand zone.
Stop loss: Above LTF Supply Zone (Created by recent BOS)
Take Profit 1: Next Break of structure at 1.351 = 2.0 R:R
Take Profit 2: Unmitigated HTF Demand Zone @ 1.3388 = 6.9 R:R
Trade closed: target reached
We have reached our Take Profit 1 after a successful touch of our Supply Zone. A perfect 2 R:R trade!We have since moved our stop loss to break even and are on our way to the larger Take Profit of a 7.2 R:R
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