USDCAD - Head and Shoulders Long Opportunity
USDCAD has provided several excellent trading opportunities over the last couple of weeks. It continues to do so for us as we have recently this week completed drawing a head and shoulders pattern. These patterns are typically a sign of a reversal, in order for me to trade them I must see them completed in not only a timely fashion, but also visually and aesthetically pleasing manner.
The Pattern is complete, there remains only one thing left to do, and that is retest the neckline that was carved out.
I have set a pending Buy Limit at 1.3030. The Measured Objective for HnS patterns is the distance from the Head to the Neckline. I've used that to set my target to 1.3250. Stop loss to be placed below the right shoulder as a move this low would negate the pattern in its entirety. We are looking for it to uphold the neckline.
Always do your own analysis before entering a trade. Know where you will exit in both directions.
The Pattern is complete, there remains only one thing left to do, and that is retest the neckline that was carved out.
I have set a pending Buy Limit at 1.3030. The Measured Objective for HnS patterns is the distance from the Head to the Neckline. I've used that to set my target to 1.3250. Stop loss to be placed below the right shoulder as a move this low would negate the pattern in its entirety. We are looking for it to uphold the neckline.
Always do your own analysis before entering a trade. Know where you will exit in both directions.
Trade closed: target reached:
Measured Objective Reached. 1.3250 Take Profit, Set SL to Break Even, Take Partial Profit, etc based on your personal trade methods. Excellent trade.
