Martijndv

USD/CAD Long 2 to 1 risk reward based on price action

Long
FX:USDCAD   U.S. Dollar / Canadian Dollar
Looking at this chart it seems the price wants to bounce in between the support and resistance levels of the lower timeframe, the upcoming support line in combination with the RSI indicator almost crossing the oversold line (it likely will have passed it once at the entry level) a long position can be taken at the lower level support line. In order to give the trade some breathing room the s/l is placed below the support line from the higher time frame.

it is possible for the price to not hit the entry level target and therefore i recommend you set an expiration date for the entry of the trade at around the 19th of feb

The t/p is placed at the resistance level of the lower timeframe since this target is most likely to be hit in a timely manner. You could also set a second t/p at the larger timeframe resistance level .

Like this idea?
https://www.mql5.com/en/signals/741470
check out my perfomance here.
Comment: Forgot to add the info that both currencies are at a 0.250% interest rate and therefore there are no carrying cost (swap) associated with this trade
Trade active: limit price has been reached, now focussing on the tp, 1.27900 is a little under t/p target but if price show signs of reversal at that range the trade might also be closed
Trade closed: stop reached: trade closed due to the trailing stop loss being hit, a nice little profit to take home