Hello my dear friends!
Hope every one is feeling good!
Our dear friend and restless worker The Forex Koala told me that some of you are asking about me and how I am feeling. Thank you every one folks! I am feeling very good and optimistic now that one of my forex projects shows positive and steady results. In time I will share it with you after all the stress tests are done and the system shows good reliability.
Now I would like to bring you attention to a good setup happening on cadjpy. After found a good and strong candlestick pattern around 94.00 obeying the envelopes as you can see in daily chart, cadjpy starts a bearish 180 pips dive and after some bullish correction , is hanging around 93.00 area.
We can see that price is touching the 21 Ema matches the 60 Ema too. We can add to this setup the resistance area of 93.00-40 right in the middle area of the envelopes, giving us a good risk/reward ratio in case the setup proves to be right. We lost the entry point on 94.00 so I intend to take this train here if cad/jpy resume the bearish trend.
Let´s focus on the last trend as bearish. Now that you already drew your lines in the chart, note the small yellow bullish trend line in the middle of the envelopes around our key resistance of 93.00-40! That line is our trigger for our bearish trade. Once you see a good close below this line and bellow 93.00 in H4 chart, consider the trigger pulled and the setup this way is valid for us to trade.
Target from here is the bottom of the envelopes around 91.50.
Stop loss from entry point above 93.40, around 60 pips stop loss for around 1/3 risk/reward ratio. A good one!
Remember that you trigger is the yellow bullish trend line in the middle of the envelopes. We have a good chance to profit cad/jpy all the pieces of our trade plan be shown to us. Manage your money and never use more than 1-3% on a single trade in order to survive! Thanks to this crucial rule I´m still trading today!
Thank you a lot for asking in concern of me folks. Hope this trade plan to happen accordingly as a gift for you as a token of my gratitude!
Nice week and pips for us all!