2021-05-22 15:23:05
Trade of the week: USDCAD Long
One of the best setups I have seen in a while and guess what, it was a loser.
This shows that even when everything lines up, you can lose and you should be prepared for that.
Let's dive into the setup.
Daily timeframe:
Important daily low taken out and rejected (blue line).
This means people that were selling the break got trapped.
This gives me a long bias.
Hourly timeframe:
Clear accumulation range on the h1, where the spring takes out the low end of the range and
also took out that daily swing low. This is a massive confluence that increases the odds.
As soon as price broke structure (blue box) I entered long, targetting
the upper green line with a stop at the lower green line.
Statistically there was a 67% chance of making 1.2R, which is a decent edge.
The confluence of the D1 made this an even better setup.
As you can see price tagged 0.9R and then hit SL.
Moral of the story:
Stick to your plan, play the odds. Even if everything looks good you can still fail.
Manage risk and on to the next trade.
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