EURCAD 60 Cloud Breakout
Updated
Monthly direction is down
Daily is in the Sell zone
All requirements are met for a cloud breakout;
1. Have a cloud breakout
2. Have a TK cross
3. The Chikou is below price
4. Future kumo is bearish
2 Potential entries:
First, the breakout entry is 6 pips below the breakout candle (however, since the next candle was a little lower I used that low of 1.4916);
Breakout Entry = 1.4910
Stop = 10 pips + 2 for spread above the Senkou B at 1.4965 = 1.4977
Risk = 67 pips
Second, Pullback trade:
Their is a very strong Resistance level at 1.4956 (blue line) which is a great place to place a limit order
Entry = 1.4956
Stop = 1.4977
Risk = 21 pips
Daily is in the Sell zone
All requirements are met for a cloud breakout;
1. Have a cloud breakout
2. Have a TK cross
3. The Chikou is below price
4. Future kumo is bearish
2 Potential entries:
First, the breakout entry is 6 pips below the breakout candle (however, since the next candle was a little lower I used that low of 1.4916);
Breakout Entry = 1.4910
Stop = 10 pips + 2 for spread above the Senkou B at 1.4965 = 1.4977
Risk = 67 pips
Second, Pullback trade:
Their is a very strong Resistance level at 1.4956 (blue line) which is a great place to place a limit order
Entry = 1.4956
Stop = 1.4977
Risk = 21 pips
Trade closed: stop reached
Unfortunately this one did not work out. Have a great weekendTrade closed: stop reached
After reviewing this trade, there is something to be learned.First, the trade was triggered 15 bars after the set-up. For a trend based strategy, this is far too long.
Second, when a low is formed at 22:00 est which is prior to the trade being triggered, that low, along with the breakout low and 2 previous lows, form pretty solid, and in this case fatal, support.
There 2 possible solutions, Could have either deleted the trade or use more of buffer on the entry.
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