Potential cup and handle formation on daily (USDCAD)
Pair: USDCAD
Timeframe: Daily
Position: N/A
Sentiment: Bullish
TLDR: Cup and handle formation on USDCAD. Looking for long above 1.2495 level given proper handle structure to 1.2800 (previous level of supply).
Outlook: Pair has been in a downtrend, but a recent move in the middle of June looked to reverse the trend. Looking back at that move, we can see there appeared to be a cup and handle formation that led to a sizable rally. Using the previous pattern as reference, we can look to the most recent set of daily candles and see a somewhat, albeit smaller, cup-like shape forming. Combine the pattern with relative strength in the general dollar, and the recent selloff of oil and we could either see a strong breakout, therefore creating a short handle and strong move to the upside. Or consolidation creating a proper handle, then a move to the upside.
Things to keep in mind:
- We are still under the 200EMA, which could provide resistance. Price could also drag along to meet with the 200EMA and start forming a handle from there.
- Dollar strength could slow down and oil could have a resurgence thus shifting the power dynamic between USD pairings.
Key numbers:
I'll be looking at using this point or the area around it to establish a long position should the proper handle structure present itself.
This is where I expect the bottom of the handle formation to be. While this is an area of interest that could serve to invalidate the trade, this will not be where I place my stop.
Is where I will most likely place a stop. I want to give the potential handle formation some breathing room. Adjust position size accordingly to account for risk levels.
TP1. I would want to see any successful cup and handle pattern to return to the previous supply areas.
TP2. I don't necessarily think a move to this area would be smooth or quick. But, I would still keep this area in mind should the cup and handle properly form.
Timeframe: This is a longer term trade. Should a successful cup and handle pattern form, it's probable the trade takes anywhere from 20 to 60 days to complete. However, things usually don't go as planned, so it will be more important to simply follow and listen to the price action, volume, patterns, and key areas.
Disclaimer : This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this post constitutes a solicitation, recommendation, endorsement, or offer by cprice253 to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Timeframe: Daily
Position: N/A
Sentiment: Bullish
TLDR: Cup and handle formation on USDCAD. Looking for long above 1.2495 level given proper handle structure to 1.2800 (previous level of supply).
Outlook: Pair has been in a downtrend, but a recent move in the middle of June looked to reverse the trend. Looking back at that move, we can see there appeared to be a cup and handle formation that led to a sizable rally. Using the previous pattern as reference, we can look to the most recent set of daily candles and see a somewhat, albeit smaller, cup-like shape forming. Combine the pattern with relative strength in the general dollar, and the recent selloff of oil and we could either see a strong breakout, therefore creating a short handle and strong move to the upside. Or consolidation creating a proper handle, then a move to the upside.
Things to keep in mind:
- We are still under the 200EMA, which could provide resistance. Price could also drag along to meet with the 200EMA and start forming a handle from there.
- Dollar strength could slow down and oil could have a resurgence thus shifting the power dynamic between USD pairings.
Key numbers:
I'll be looking at using this point or the area around it to establish a long position should the proper handle structure present itself.
This is where I expect the bottom of the handle formation to be. While this is an area of interest that could serve to invalidate the trade, this will not be where I place my stop.
Is where I will most likely place a stop. I want to give the potential handle formation some breathing room. Adjust position size accordingly to account for risk levels.
TP1. I would want to see any successful cup and handle pattern to return to the previous supply areas.
TP2. I don't necessarily think a move to this area would be smooth or quick. But, I would still keep this area in mind should the cup and handle properly form.
Timeframe: This is a longer term trade. Should a successful cup and handle pattern form, it's probable the trade takes anywhere from 20 to 60 days to complete. However, things usually don't go as planned, so it will be more important to simply follow and listen to the price action, volume, patterns, and key areas.
Disclaimer : This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this post constitutes a solicitation, recommendation, endorsement, or offer by cprice253 to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Comment:
Broke my own trading rule and entered prior to candle close. Got caught in fake-out move. However, cup & handle structure is not broken and SL still valid. Could have gotten a better entry though.
Comment:
Position exited for loss.
Open price: 1.24832
SL: 1.2390
TP1: 1.2790
TP2: 1.2950