USDCAD: Break Hook and Go after NFP!
Couldn't resist not analyzing this setup!
Here it is for educational purposes. Never chase a breakout - Wait for pullbacks to get a more attractive reward-to-risk for your setup.
The trade went like this:
1. CAD labor market numbers strong vs USD labor market numbers weak (13:30 London time)
2. Breakdown on strong selling volume
3. Pullback to important 1.2850 level
4. Liquidity returns on high-volume weak bullish candle (chance for institutional traders to buy CAD at discount price, i.e. short USDCAD . They drain liquidity until the price reaches the 50%-61.8% zone. Yes, it's manipulation.)
5. Now we have a classic "break hook and go" setup with a profit target at the 1.272 Fib extension (reward-to-risk 9:1 if aggressive)
Great trade to close the week!
Here it is for educational purposes. Never chase a breakout - Wait for pullbacks to get a more attractive reward-to-risk for your setup.
The trade went like this:
1. CAD labor market numbers strong vs USD labor market numbers weak (13:30 London time)
2. Breakdown on strong selling volume
3. Pullback to important 1.2850 level
4. Liquidity returns on high-volume weak bullish candle (chance for institutional traders to buy CAD at discount price, i.e. short USDCAD . They drain liquidity until the price reaches the 50%-61.8% zone. Yes, it's manipulation.)
5. Now we have a classic "break hook and go" setup with a profit target at the 1.272 Fib extension (reward-to-risk 9:1 if aggressive)
Great trade to close the week!
Related publications
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.