Trade 21 – EUR/CAD

Entry

t21cad1Reference on the Weekly Price at a diagonal support with the downtrend seemingly coming to an end. On a nearer term, on the daily, price is deemed to be ranging. The weekly chart shows huge upside potential, might take some time however. Bullish engulfing also suggest the bulls have stepped in, ready to drive prices up.

t21cad2Entry on 1H Spotted a coil in the market in the form of a triangle on the lower timeframe. Traded the break out.

1% capital risked for potentially 17.3R.

Entry: 1.411 | Stop loss: 1.403 | Target Profit: 1.55

Psychology and emotions – Always wanted to trade the break out of a coil, finally had the chance. Awesome trade in my opinion.

Trade Management

updeurcadPrice did a proper break out and is now at 1R. Stop loss will not be shifted up yet though, this is to give room for price to retrace with breakeven (entry) point a possible place for support.

Triangles seem to be working out well, look out for more in the future.

08/03/17

CAD (-).pngStop loss shifted to break even (to 1.412 for a 10 point gain) after next correction seems to have been broken out of.

09/03/17

eurCAD (-).pngTrailing stop shifted to 1.415 for a gain of 40 points or 0.5R

13/03/17

eurcadupd.pngTrailing stop shifted to 1.43 (top line) for a gain of >2R or 190 points.

If this was a swing trade based on the 4H and Daily, take profit level would have been at 1.43 and this trade would have been exited already. But letting winners run, in accordance with weekly, target profit has been set far away and downside managed with trailing stop. 1.425 was the second level considered, based on market structure, this should be the correct level where a TS strategically be placed.

However, with the Euro across all other currencies at a resistance, it might be due for an extended correction (bounce off resistance) or immediate break out. Therefore, TS was tightened.

If TS triggered, initial intended TP with 2R secured & look to reenter at a better price as bias is still very much bullish.

If TS not triggered, continue to manage position accordingly. Also, the very reason why winners are allowed to run and TP was keyed in far away based on the weekly swing.

If TS triggered and price continue moving upwards, tough luck. At least >2R was secured. Look to reenter at the next opportunity.

14/03/17 @ 0325ececTrailing stop shifted down to 1.425

Chances of uptrend continuation is very high after taking a look at the weekly/daily chart.

If TS triggered, at least about 1.5R secured & look to reenter at a better price as bias is still very much bullish.

If TS not triggered, continue to manage position accordingly. This additional buffer will give the market reasonable space. Also, the very reason why winners are allowed to run and TP was keyed in far away based on the weekly swing.

If TS triggered and price continue moving upwards (this situation is now less likely), there will be more time to reenter into the position. A proper pullback should be in store if the TS is triggered.

Exit

eurcadupd.pngManual exited the trade. [1] A number of confluences for the resistance point at swing high [2] ST TL and SMA breached, a pullback quite likely – will reenter again [3] Secured 2.3R

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