PateSkpate

USDCAD 60min Balance Area Breakout

FX:USDCAD   U.S. Dollar/Canadian Dollar
10 months ago
USDCAD             has retraced almost back to Daily Support and is balancing just ahead of the Support Zone. These Balance Area's make for good Breakout trades. Balance areas are simply just Accumulation or Distribution (we don't know which one it is until the market tells us, which is done by breaking out).

This trade will be valid which ever way it breaks. I would think a breakout to upside would gather the most traction but you never know!

RSI is starting to give a clue by showing some Bullish Divergence. Although, this is not a signal to enter the trade for me.

Entry - I use a Break & Close out of the Balance Area for my entry.

Stops - I use 1 ATR Above or Below the Breakout Bar.

Target#1 - I use a measured move of the Balance Area (Blue Line).
-For the Upside break, Target #1 has confluence with Structure and a 38.2% Fib Retracement from the highs.
-For the downside break, Target #1 is simply just the measured move.

Target #2 - I use the next Major Fib for Target #2.
-For the upside break, Target #2 has confluence with Structure and the 61.8% Fib Retracement from the highs.
-For the downside break, Target #2 is simply just the 1.618% Fib Extension.

Best of Luck!
10 months ago
Trade active: Short from 1.4019
10 months ago
Comment: Target #1 hit.. Stops moved to breakeven
10 months ago
Trade closed: target reached: 2nd half of Position was stopped @ BE
rozela99
10 months ago
Nice! I would almost take this trade with ya. Key word being almost. I would love to add this kind of trading to my tool box one day. First things first though. Good luck
+1 Reply
PateSkpate rozela99
10 months ago
Thanks man! Yea, master what you are doing first. These Balance Area's are very simple to trade and have very simple rules. I mainly trade these intraday on the 5min charts. Very profitable pattern on the 5min. It's accuracy is up there with the Cypher.. Around 70% to Target #1!
Reply
rozela99 PateSkpate
10 months ago
Your welcome. Wow a 70% thats awesome.
Reply
lowstrife MOD
10 months ago
I like your style of support\resistance. Similar to mine
+1 Reply
PateSkpate lowstrife
10 months ago
Thanks man!
Reply
Amina66
10 months ago
I'm in! :D thanks mate.
Reply
PateSkpate Amina66
10 months ago
Move that market for me! ;) Best of Luck!
Reply
gwsnel
10 months ago
Thanks for the explaination of your trade. I was wondering abaut targets and stops whit these setups.
Dont you ever wait for a retest of the breakout area for your entry?
Reply
PateSkpate gwsnel
10 months ago
You're welcome! Only time I use that method for entry is when the break & close gives me LESS than a 1 to 1 Risk/Reward. I found in my backtesting that I would miss a lot of winning trades if I played it very conservative by waiting for the retest. Hope that helps!
Reply
Amina66
10 months ago
Thanks for reminding :D
Reply
PateSkpate Amina66
10 months ago
lol!
Reply
Nice!
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out