Peak formation in a descending channel
Updated
We have a trend line structure in this setup, a descending channel. On the 240, we have a M peak formation at its 2nd leg, and in that 2nd leg, we also have a M formation on the 15-min, a timeframe that I use to enter my trades.
CADCHF is then a pretty good short opportunity. I'll be short from 0.7815 and I'll have a SL around 0.7825. If the trade hits my SL, I'll get back in according to my strategy.
TP1: 2.1 RR
TP2: 3.5 RR
Extended target: 15.5 RR
Total Risk: 21+35+155/10+10+10 = 211/30 = 7.03 Real Risk/Reward
Aggregate Risk: 2.1+3.5+15.5 = 21.1 Reward if all TP Hit.
CADCHF is then a pretty good short opportunity. I'll be short from 0.7815 and I'll have a SL around 0.7825. If the trade hits my SL, I'll get back in according to my strategy.
TP1: 2.1 RR
TP2: 3.5 RR
Extended target: 15.5 RR
Total Risk: 21+35+155/10+10+10 = 211/30 = 7.03 Real Risk/Reward
Aggregate Risk: 2.1+3.5+15.5 = 21.1 Reward if all TP Hit.
Note
The targets RR have been miscalculated but you get the idea thereNote
RR: 20.1Aggregate Risk: 6.7
Sorry for the inconvenience, I inverted the concepts and I had to remove 10 pips from the calculation of TP1.
TP1 RR is 1.1, not 2.1
That changes basically nothing but I had to notify.
Trade safe.
Trade active
Note
First TP reached.Trade closed: target reached
2nd TP reached.Trade closed manually
SL Break-even for the extended target.
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