EverythingForex
Long

TRADE: USDCAD: BUY@1.30780 Still looking For the end of Wave 2

FX:USDCAD   U.S. Dollar/Canadian Dollar
I'm taking this LONG trade because I still strongly believe that we are in a wave 2 of (5). I'm just looking for where this wave 2 MIGHT end. Do I believe it could be here? Yes, It could be. But I am well aware that the bearish nature of the price action does not bear that out. So why am I taking this trade?

The breaking of that BIG long term triangle is the reason we are seeing this bearish move down. A break of that triangle brought in the sellers selling on that break. If you trade triangles, then you know that the height of the triangle is the profit target. Well, that is also where we are at now. The AB=CD stemming from that triangle has been reached which is the triangle profit target. There is also a completed bullish crab pattern here and also is still within the PRZ of the completed bullish DEEP crab I posted earlier. In addition, prices ARE now within the "Goldilocks zone" where reversals often happen. It is now sitting (as of the time of this posting) at the .707 retracement of wave 1. So even if this is NOT the end of the wave 2 down, it still seems to be a good place to take a LONG trade.

Here's a the expanded view of the 1Hr chart above:
snapshot

4Hr Chart Showing 2 POTENTIAL Patterns
This chart shows a POTENTIAL bullish bat and a bullish butterfly both ending near the .886. If the trade I am taking now fails, then I will be looking towards these to pattern to find the next possible points where wave 2 may end.
snapshot

MY TRADE PLAN
This is very much a counter-trend trade, I am keeping stops tight. If prices should break the .786 retracement, I will close the trade and wait for the completion of the POTENTIAL bullish bat or the butterfly as seen in the 4Hr chart before possibly taking another LONG trade.

*DISCLAIMER:
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!

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