USDCAD 4H Bearish RCT
I have taken a closer look at this price structure in play here on the 4H and it is looking like these AB=CD patterns are likely to hold. This initial move down will tell us a lot. I am watching the 1.2562 level, if price closes below this level then I am more confident in price reaching the 1.2350 area. It is possible that the 1.2562 level initially holds to trap some buyers and then breaks down, so any long position around the B level of 1.5262 I would trade with low risk. There may be a small tradable upside correction there before price breaks down. The powerful figure 8 patterns are in play here and they are one of the more powerful patterns I have found. The long position in the 1.2350 area is the large daily bullish RCT I am watching.
Trading strategy: I am waiting for a LCT candle on the 4H to short the bearish RCT price structure. If price closes above 1.2814 the 4H bearish RCT price structure is no longer valid. Then I will be watching the B level of 1.2562 very closely. If price closes below this level I will hold my entire short position down to the 1.2350 area. If the B level holds I will likely close half of my short position and move my stop to BE on the other half. In a perfect world price clearly closes below B and I close my short position in the 1.2350 area and enter long trading the daily bullish RCT price structure with a target in the 1.3350 area. If price closes below the 1.2295 level the daily bullish RCT price structure is no longer valid.
Trading strategy: I am waiting for a LCT candle on the 4H to short the bearish RCT price structure. If price closes above 1.2814 the 4H bearish RCT price structure is no longer valid. Then I will be watching the B level of 1.2562 very closely. If price closes below this level I will hold my entire short position down to the 1.2350 area. If the B level holds I will likely close half of my short position and move my stop to BE on the other half. In a perfect world price clearly closes below B and I close my short position in the 1.2350 area and enter long trading the daily bullish RCT price structure with a target in the 1.3350 area. If price closes below the 1.2295 level the daily bullish RCT price structure is no longer valid.
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