USDCAD - Set and Forget

163
1. Objective:
The objective is to enter a sell trade and ride the expected downward trend to the Wave 5 completion.

2. Key Levels:
Resistance Levels:

1.35880: Major resistance level (D1 R) above Wave 4.

Support Levels:

1.32672: Key support level (D1 S) and the expected completion of Wave 5.

Invalidation Level (Stop Loss):

1.35880, the resistance level, as a break above this would invalidate the expected downward move and signal that the Wave 4 correction is still in play.

3. Entry Strategy:
Entry Point (Sell Stop): 1.34990

This level is slightly below the current price and the confirmation sell stop level indicated on the chart, signaling the start of the bearish breakout.

4. Profit Targets:
First Target (Conservative): 1.34000

This is a minor level, providing a conservative target in case the move takes time to develop fully.

Second Target (Aggressive): 1.32672

This is the key support level (D1 S) and the expected completion of Wave 5, making it the aggressive target for the full downward move.

5. Stop Loss:
Stop-Loss Level: 1.35880

Set above the resistance level of 1.35880 to protect against further upward movement in case the analysis is invalidated.

6. Risk-Reward Ratio:
Risk: 89 pips (from 1.34990 entry to 1.35880 stop-loss).

Reward for Target 1: 99 pips (from 1.34990 entry to 1.34000).

Reward for Target 2: 232 pips (from 1.34990 entry to 1.32672).

Risk-Reward Ratio:

Target 1: 1:1.11 (for a conservative target, acceptable).

Target 2: 1:2.6 (for an aggressive target, highly favorable).

Conclusion:
Strategy: Enter a Sell Stop at 1.34990, with a stop-loss at 1.35880.

Profit Targets: First target at 1.34000 and second target at 1.32672.

This plan offers a strong risk-reward ratio, particularly when targeting the extended move to 1.32672, which aligns with the completion of Wave 5.

This trading plan provides a clear structure, strong risk management, and high probability of success based on the current wave structure analysis.

Trading Suggestion

Sell Stop

Entry Level: 1.34900

Stop Level: 1.35700

Profit Level: 1.32700

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.