The CADJPY chart below was posted on social media @AidanFX on May 25 2022 showing price terminating wave 2 (B alternate) in Demand Zone (Light Blue) and looking to see a reaction higher from the zone. Stochastic indicator showing divergence from wave ((a)) low to wave ((c)) low and hit oversold levels confirming a possible reversal to the upside. Price was showing evidence of a possible bounce higher and BUY trade was entered at 98.80 with stop loss at 97.80. Minimum target is at 100.80 (1:2 RR) and maximum target at 103.80 (1:5 RR). Bullish flag pattern (Black trend line) is also visible and more confirmation of the pair pushing higher will be if price breaks and closes above top line of flag and rallies strong above the equal legs level.
CADJPY 4 Hour Chart May 25 2022
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media you too could have caught the CADJPY trade setup. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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