I'm targeting a short position for CADJPY on the 3-hour chart using Elliott Wave analysis.
The current price level is around 113.450. I've identified the completion of wave (5) and the start of a corrective wave (a), suggesting a continued downward movement.
My target levels are based on the Fibonacci extension of wave (a). The target levels are:
- 0.373 Fibonacci extension level at around 113.197
- 0.618 Fibonacci extension level at around 111.898
To manage risk, I will place a stop loss just above the recent high of wave (b) at around 116.0. This stop loss level will help protect against any unexpected upward movements while allowing for typical market fluctuations.
I'll monitor the trade closely as the price approaches the target levels. If the price shows signs of support or reversal near the targets, I'll consider taking profits and adjusting the stop loss to break even or slightly lower.
By following this strategy, I aim to capitalize on the expected downward movement in CADJPY while effectively managing risk with clear entry, target, and stop loss levels.
The current price level is around 113.450. I've identified the completion of wave (5) and the start of a corrective wave (a), suggesting a continued downward movement.
My target levels are based on the Fibonacci extension of wave (a). The target levels are:
- 0.373 Fibonacci extension level at around 113.197
- 0.618 Fibonacci extension level at around 111.898
To manage risk, I will place a stop loss just above the recent high of wave (b) at around 116.0. This stop loss level will help protect against any unexpected upward movements while allowing for typical market fluctuations.
I'll monitor the trade closely as the price approaches the target levels. If the price shows signs of support or reversal near the targets, I'll consider taking profits and adjusting the stop loss to break even or slightly lower.
By following this strategy, I aim to capitalize on the expected downward movement in CADJPY while effectively managing risk with clear entry, target, and stop loss levels.
Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.