Hey traders! We're enjoying a great rally on the USDCAD. This is it if you missed it:
Here's where it gets a little more exciting. We're looking at consolidation after wave-((3)). A nice triangle formation is telling me we will see continuation after completion of the E leg. So, what does that mean? I want to add more to this position at wave-E! Also, our invalidation levels have moved, so we can now move our stop loss to just below the second invalidation level. This is the level at which the trade will no longer be valid and we will have to recount knowing this is no longer a five wave impulse. I am adding to the position, but not more that would make this level unprofitable.
PS: Since waves one and three are roughly equal, I expect an extended fifth wave. Commodity-driven currencies tend to behave this way. It is not a guarantee, just a guideline. I will likely keep same target but will update if I hold longer than the idea describes.
Happy trading!
Trade active
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Looks like we have liftofff! I have added. Keep in mind this could be continued, albeit powerful, corrective structure toward final wave-E. I like the odds though. Enjoy!
Comment
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Hey traders! Here is a quick update. As shown on previous comment, the first invalidation level indicates a recount on the MINOR degree only. This is in fact a good thing, because it reveals to us that the third minor degree (wave-((3))) was not in fact completed. What does this mean? Well, typically it means higher targets. Watch for that lower invalidation level (see below). Drop below there would mean a COMPLETE recount is in order because we'd then witness 1/4 overlap, a violation of the EW rules. Cheers!
Trade closed: target reached
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Keep your losses small and your profits big everybody! +140p with a 7.5p risk and a R/R of 18.65. Looking for short opportunities now at Gartley. Enjoy