We can see USDCAD is in a period of consolidation havent broken the 1.29000 level - we hit it twice to present us with the which worked out well and hit our targets very easy.
If we continue upwards and break past A leg maybe we can look for a retrace to test the structure level to go long, I will see what other opportunities we have
I have marked the chart as always
Green for Entry - this will determine what your rules are with - some use the 1.272 Ext. should be
1. X to A move presenting our B Leg at minimum 61.8% but not touching the 78.6%
2. B to C move - Minimum 61.8% retrace from A to B - but not passing the A leg
3. C to D should complete exactly at a 78.6% retrace from the X to A Move. and a 1.272% extension from the A to B leg, and also and exact move which you copy the AB leg and Paste it from the C leg, when we have a perfect these will all line up exactly at the same position for our D completion.
4. In this case because our A to B move was longer than the 61.8% this is what pushes the 1.272% further down making our kill zone for entry anywhere between the 78.6% and 1.272% EXT
Stops - Red are 113% below X leg
Initial Targets are - 38.2% and 61.8% Retrace from our A to D Move - this being 1.272% entry level. Targets will be adjusted on D completion.
If pattern violates A Leg pattern is invalid.
All the best and happy trading.