[B]USDCAD, 1D[/B]
[B]Long or Short:[/B] Long
[B]Entry Point[/B] 1.0246
[B]Stop Loss:[/B] 1.0062
[B]Profit Target/s:[/B] 1.0467
[B]Reward-to-risk Ratio:[/B] 1.2 : 1
[B]Risk percentage:[/B] 2%
[B]Indicators used:[/B] price action, support and resistance
[B]Trade Rationale:[/B]
[ul]
[li]The pair is on an uptrend on the daily chart
[/li][li]The most recent candle bounces of the trendline
[/li][li]At approximately 1.0230 there is a strong area of support and resistance, notice that there are lot of candles bouncing off that line
[/li][li]For this reason the entry point is set to 16 pips above the 1.0230 line
[/li][li]Take profit is set to just below the previous high: 1.0467
[/li][li]The stop loss is set below the most recent candle at 1.0062
[/li][/ul]
[B]Trade Adjustments:[/B]
We need to be careful of a few things:
[ul]
[li]Price action isn’t entirely on our sides because the previous high isn’t higher than the one before. In this case we need a good confirmation before going long. For this reason I’ve set the entry point above the line of support/resistance.
[/li][li]If the trade moves in the wrong direction quickly I’d consider closing early before hitting the stop loss
[/li][li]The profit target listed above is our first target. Since the pair is on a uptrend we hope that it will push even higher, therefore monitor the trade if it gets close to the target and consider moving further up.
[/li][/ul]