USD/CAD SHORT - Exhaustion/Doji/Shooting Star/Strong Bearish/Fib
Updated
Looking at the 1HR time frame on this pair, you can see after a long bullish run, an exhaustion candle formed, followed by a doji, followed by a shooting star, which shows weakness by the bulls and strength in the upcoming bearish moved. After this a strong bearish candle formed, which for me was the indication to enter the trade. I have placed my SL just above the bearish candle, ideally it would be above the wick of the shooting star, however, this would dramatically effect the R/R and make it below the 1.0 level. Also a fib has been drawn on the 1HR timeframe, and the 0.382 level ties in with the support point. I believe the trend will continue upwards after this and create new highs touching the next trend line then have another possible retracement. I took this trade at lower than my usual 1.5 R/R as it feels like a solid setup to me.
TP @ 1.31599
SL @ 1.32026
R/R @ 1.22
TP @ 1.31599
SL @ 1.32026
R/R @ 1.22
Note
Closed trade manually after a doji was created on the 1HR chart. 50% of target achieved.Note
Missed TP by 1 pip.Note
Would have hit TP, but rather be safer than sorry when price made a doji. Good call.
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