The USDCAD 4 Hour chart below was posted on social media @AidanFX August 16 2021 showing the possible bullish scenario. Both price and indicator formed a bullish divergence pattern signalling a trend continuation. Since the July 30 2021 low the pair has moved higher in a higher high/higher low sequence confirming an upside trend was in the works. Added confirmations were when indicator crossed above the 50 level signalling bullish momentum and when price traded above the cloud was another bullish signal. Entered the BUY trade at 1.2523 with Stop Loss at 1.2488 looking for a move higher to the 1:2 RR level as the minimum target.
USDCAD 4 Hour Chart August 16 2021
USDCAD eventually moves higher and blasts through the proposed targets. On August 18 2021 price hits the 1:5 RR target at 1.2698 from the 1.2523 entry for +175 pips. A trader should always have multiple strategies all lined up before entering a trade. Never trade off 1 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 @AidanFX you too could have caught the USDCAD move higher. 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.
USDCAD 4 Hour Chart August 18 2021
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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