USDCAD has had 9 Straight days of Advance and has been VERY Bullish. It's currently in a nice Rising Channel. The Balance Area at the highs looks like Distribution to me. A lot of times this is a "topping pattern". So, I'm waiting for a Break & Close out of the Balance Area (Yellow Box) and will enter a short position.
Stops - Will be 1 ATR above the Breakdown Bar.
Target #1 - Will be a measured move of the Balance Area (Purple Line)
Target #2 - Will be at Minor Support for a downside breakdown. 1.618% for the upside breakout
You can see that the RSI has massive Divergence at the highs as well.
I will also take the trade to the upside but I think the downside breakdown is the most probable scenario.
Trade closed: target reached
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Well the upside scenario played out.. Wasn't expecting that.. Thats the nice thing about waiting and letting the market tell you which way its going before you position yourself :)