Here we have a VALID SYMMETRICAL TRIANGLE on FX:USDCAD, which has formed within the consolidation zone. We have been in this consolidation for the past 15 days and this probably has to do with the upcoming Fed interest news this Thursday. Everyone is just trying to be on the safe side and the direction will probably be more clear after the Fed news. This type of consolidation can be seen in almost any FX pairs, but it's more obvious in pairs related to USD, like EURUSD, GBPUSD, AUDUSD, NZDUSD, etc.
For this pattern I have labelled 3 potential targets each with a same -50 pip stop loss. 1st target can be taken at the lows of the consolidation zone, while the 2nd target can be taken at the 127.2% Fib extension for A and B points. And the last or 3rd target is the measured target, which is equal to the distance between points A and B, which is approximately about +236 pips.
NOTE #1: The current candle has broken the triangle to the downside and most likely will close below the bottom of the triangle. Wait for the retest of the triangle before entering into the short trade. Be ready for any type of possible false breakouts, especially since we are in a consolidation zone.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Hey mate, thank you. Symmetrical triangles work very rarely for me. But this one was pain free :)
ElPatron.Y
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Did you long crude at 43's?
moneymaking
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Not yet mate, I am waiting for a deeper retracement to the downside, before adding any more long positions.
moneymaking
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We are currently getting hidden bullish divergence, but it requires more proof before putting at capital on it :)
KVE
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Nice, I had almost the same "up" trendline on my radar but missed the breakout regretfully...
Trying to get some pips out of a possible retracement up now, if the stop-chasers don't get me...
If we break the 1.3120 level below we might be in for the long haul, on to that lower "up" trendline, 1.2700 would be a nice goal...!
Good job on this one for you, hope your trade goes well!
moneymaking
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Hey KVE, thank you for the kind words. Appreciate it. All the BEST :)
IvanLabrie
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I don't think this is a triangle but the concept more or less describes the price action.
The breakout would probably be short lived if it went up.