USDCAD → Bottom of Trading Range! Looking for Long Entry.USDCAD is at the bottom of a trading range and near the Weekly 200EMA which acted as good support in the last bull trend opportunity from July to October. Now that we're here, should we long?
How do we trade this? 🤔
We almost have enough price action to justify a long entry. Longing now would be maximally risky because we don't have a good buy signal bar yet. You could enter now with the understanding that every time we've hit these levels since September 23, a long as been profitable. I prefer more confirmation and thus, more probability before entering a trade. I think we need at least a good strong buy signal closing in the 131.300 - 131.600 range. With this signal, we can enter a trade a 1:2 Risk/Reward Ratio to the top of the trend.
Wait for a couple more Daily candles to show such support before longing. Until then, lets be patient on the sidelines!
💡 Trade Ideas 💡
Long Entry: 132.665
🟥 Stop Loss: 130.000
✅ Take Profit: 138.000
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Trading Range after Bullish Price Action, Bias to Long.
2. Near Trading Range Support and Weekly 200EMA, Look for Entry.
3. Look for Test of Support before Entering a Trade.
4. Target 1:2 Risk/Reward, Stop Loss below 200EMA, Take Profit at Top of Range.
5. RSI at 39.00 and below Moving Average. Needs to Fall More before Long.
💰 Trading Tip 💰
Trends typically have three legs in either direction. Signals of a reversal include strong buy or sell bars with large wicks, higher highs and lower lows get weaker, and responses to the reverse direction get stronger. Confirmation lies with double and triple bottoms with a strong candle closing on or near its low/high.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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