Potential Trend Continuation Pattern
Note: Welcome back for some more chart analysis practice. As you know, I am not taking this trade in real life, and I have not back-tested this particular strategy on the USDCAD, so I really don't know how this type of trading strategy will work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Hey guys, I found a third potential opportunity here for some analysis practice on the USDCAD. Now I will say that I came to this late, as you can see the market touched the 0.618 Fib level (my entry point @ 1.31044) twice already. So I am hoping the market will come back down and hit my entry one more time so I can hypothetically get involved with this trade. It's funny cause you guys are probably thinking why I care whether or not the market touches my entry another time, seeing as which this is just analysis practice. Well to be fair, even though this is just for practice, and it isn't real, I like to treat it as though it is. This is what you do when you are back-testing and forward testing, you take hypothetical trades based on your trading plan, and you pretend as though the trades were real. That being said, if the market does hit my entry @ 1.31044, then I would place my target @ 1.30372 and my stop loss 10 pips above the most recent lower highs @ 1.31554. So, now we sit on our hands and wait.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Hey guys, I found a third potential opportunity here for some analysis practice on the USDCAD. Now I will say that I came to this late, as you can see the market touched the 0.618 Fib level (my entry point @ 1.31044) twice already. So I am hoping the market will come back down and hit my entry one more time so I can hypothetically get involved with this trade. It's funny cause you guys are probably thinking why I care whether or not the market touches my entry another time, seeing as which this is just analysis practice. Well to be fair, even though this is just for practice, and it isn't real, I like to treat it as though it is. This is what you do when you are back-testing and forward testing, you take hypothetical trades based on your trading plan, and you pretend as though the trades were real. That being said, if the market does hit my entry @ 1.31044, then I would place my target @ 1.30372 and my stop loss 10 pips above the most recent lower highs @ 1.31554. So, now we sit on our hands and wait.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Trade closed: target reached:
Hey guys, just wanted to give ya'll an update on this particular trade. So the market did come down and hit my entry for a third time as you can see, which would have allowed me to enter this trade (if I was trading this strategy with real money of course). Once the market hit my entry, it continued it's bearish trend and hit my target. I like trades like this, where the market doesn't play around much but either stops you out or hits your target relatively quickly. So, all in all this was thankfully a fairly painless trade. I hope you guys enjoyed this analysis. Have a great day, and I will see you in the next one!