Bearish Butterfly pattern - short at 1.30300 - (sorry D point is out of screenshot at 1.30300)
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Here we are ...point D now clear.......
Trade active
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Butterfly has gone to the 1.618 extension ....thats the problem with the butterfly...can be either 1.272 ext or 1.618....my stop is over 1.305.....so covers this possibility.....
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Looks like the bearish butterfly did its job, although unusual to see price go higher straight after...its just held nicely at 1.30350 .618 retracement...so looking good so far
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Take profit ...safe option is around 28.25......however , I will be watching oil.....if its bullish and goes on a 5th wave unto 55-60 area...then I will be targeting 1.25 (double bottom)
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Ive exited the trade, very small loss incurred, the butterfly was on a short timeframe and did reverse price to 1.30.( but its affects have worn off) ......price now looks too bullish and in a channel it wants too retest the top for a 3rd time, RSI no longer convincing, I will continue to monitor this alongside DXY.....I will look at price action and RSI around the 0.618 retracement level. and short on a pullback...an oil breakout upwards is due in the next 2-3 days and USDCAD will fall.
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Im loving the butterfly today !!!
USDCAD now looks to be headed for 1.315 as this is end of the AB=CD impulse @ 1.618 ext and also .786...fib..(the butterfly fib)....so I will be shorting at 1.315......this could be the road to the 1.34 area ...see my previous post on USDCAD...either way its very likely a reversal at this level....
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5 wave and ABC correction....shame I will be in bed and miss this!!!
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oops,, here is the chart
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Butterfly top pattern looks likely due to the 0.786 retrace.....so short at D ...TP 1.3065........
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Heres the right chart!!!
allow stop loss to 1.318....as butterfly could extend to 1.618 extension and finish around 1.3110
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should have read SL @ 1.3118Note
Nice !
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This is still a topping formation..the 5 wave sequence confirms this....just adjusted stop loss a little to allow for a longer spike...longer ABC correction with this pattern :0)))
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Another butterfly...if you aren't in...another short opportunity.....1.33108
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correction......1.3108Note
lets get it right... 1.31308.......thereTrade active
Just completed ..so shorted at 1.3132.....SL is over 1.35......reason is because 1.35 is the next fib line of resistance....
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1.3474...this is a reversal level ...0786 fib....I think price will finallyt urn down now...target is the 1.295 resistance area.....
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numbers are confusing...its 1.31474Trade closed: target reached
Ive taken profit on two of the shorts at 1.30005Ive opened a small long position with TP of 1.3105
I will let my other short run for now...
Trade closed: stop reached
my long was Stopped out. (small amount)..it was a bit risky I was going against trend and had too tight a stop....I made a lot on the short so not too fussed...
It may have bottomed at 1.30....but I wont be buying again unless we are around 1.295 area......it should bounce off one of these prices up to 1.309...1.3105....I will be shorting in that area....
Trade closed manually
TAKEN PROFIT ON SHORT FROM 1.313Trade active
Gone long at 1.2955SL 1.2935
TP 1.306 - 1.31 area...watch price action
Trade closed: stop reached
Another valuable lesson learned......rushed in a bit too early on this one...
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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.