IvanLabrie
Long

EURCAD: Potential rally after downtrend time expired

FX:EURCAD   Euro / Canadian Dollar
In this chart we have a nice long setup, with a premature entry, based on a series of factors, ahead of the time at mode confirmation for this trade.

Since we're above the mode, or most frequent price since the recent low, it's likely to see uptrend continuation, specially considering that the downtrend we had observed in the daily (see my related publications) has reached the target, and the time duration of it expired. This implies price can rally back to the downtrend mode, which is what I expect based on the eurusd             , usdcad             and oil             charts.

We can enter preemtively now, using a wider stop and a smaller position (1% risk at the 3 atr stop on chart), and set a generic 5 atr take profit. This type of entry lets us 'feel the waters' in many instruments, and focus on adding to those that are currently performing best. We can also use paper trading accounts to take positions we wouldn't normally take, or to sell when we close any long trade, etc. and track our performance this way.

I hope you find this useful, it's not always about using tight stops, but having lower risk from time to time, can favor our equity curves too.
The horizontal lines are 1 atr distance levels, where I would like to add to the trade (and which would confirm the strength of the proposed uptrend). After exceeding 1 atr profit, we can add on any setback, no need to add if price keeps going up with no retracement.

Happy Easter!

Ivan Labrie
Trade closed manually: This pair is not acting well, CAD is quite strong, same as AUD for now, since the dollar is under strong bearish pressure. Despite rallying strongly, EURUSD isn't outperforming the other dollar crosses due to its lower volatility, so I'd reccomend to stay flat in this market and EURAUD for the time being.
Comment: If you're still in, move the stop loss to entry price.
Comment: Slow progress.
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