USDCAD 60min Balance Area Breakout Opportunity
Updated
USDCAD has had 9 Straight days of Advance and has been VERY Bullish. It's currently in a nice Rising Channel. The Balance Area at the highs looks like Distribution to me. A lot of times this is a "topping pattern". So, I'm waiting for a Break & Close out of the Balance Area (Yellow Box) and will enter a short position.
Stops - Will be 1 ATR above the Breakdown Bar.
Target #1 - Will be a measured move of the Balance Area (Purple Line)
Target #2 - Will be at Minor Support for a downside breakdown. 1.618% for the upside breakout
You can see that the RSI has massive Divergence at the highs as well.
I will also take the trade to the upside but I think the downside breakdown is the most probable scenario.
Stops - Will be 1 ATR above the Breakdown Bar.
Target #1 - Will be a measured move of the Balance Area (Purple Line)
Target #2 - Will be at Minor Support for a downside breakdown. 1.618% for the upside breakout
You can see that the RSI has massive Divergence at the highs as well.
I will also take the trade to the upside but I think the downside breakdown is the most probable scenario.
Trade closed: target reached
Well the upside scenario played out.. Wasn't expecting that.. Thats the nice thing about waiting and letting the market tell you which way its going before you position yourself :)
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