Despite all the talk of the Canadian economy in tatters as oil prices tumble, I focus on price and limit my risk.
Catastrophic events happen causing erratic behaviour in the markets. But all things being equal, the charts are telling me there is a good chance that USDCAD will fall from 1.51800.
Again, low risk, high potential reward is what I look for. I make sure I limit the things I can control. I cannot control oil prices, or Canadian economics. I control my trading account.
This is a nice area for a short position high up on the curve. Price is struggling to get through orders in a poor zone. This suggests that the buying power might not carry much strength going into 1.51800. The mass of sell orders might overwhelm buyers.
Entry: 1.51800
Stop: 1.53800 (200 pips, yikes! Trade carefully. Small positions and then build up)
Reward: Straight away, I am looking at 1.40000 and then 1.34000 (so 200 pips isn't that much risk really)
Catastrophic events happen causing erratic behaviour in the markets. But all things being equal, the charts are telling me there is a good chance that USDCAD will fall from 1.51800.
Again, low risk, high potential reward is what I look for. I make sure I limit the things I can control. I cannot control oil prices, or Canadian economics. I control my trading account.
This is a nice area for a short position high up on the curve. Price is struggling to get through orders in a poor zone. This suggests that the buying power might not carry much strength going into 1.51800. The mass of sell orders might overwhelm buyers.
Entry: 1.51800
Stop: 1.53800 (200 pips, yikes! Trade carefully. Small positions and then build up)
Reward: Straight away, I am looking at 1.40000 and then 1.34000 (so 200 pips isn't that much risk really)