Trend Analysis
Higher Time Frames: Confirm a broader bullish trend or at least an uptrend in the larger time frames (e.g., daily or 4-hour). If EUR/CAD has been making higher highs and higher lows, this confirms that the pair has bullish momentum.
Shorter Time Frames: A bullish reversal or continuation pattern on the 1-hour or 4-hour chart can provide the signal entry.
2. Support/Resistance Levels
Entry Point: Look for a clear support level where the price has reacted several times. This level may align with Fibonacci retracement levels (like 50% or 61.8%) from a recent up-move, reinforcing its reliability.
Resistance Target (80 Pips Up): If you see a nearby resistance level approximately 80 pips away from the entry, it offers a natural target zone. This could be a previous high or a strong Fibonacci extension level.
3. Risk Management
Stop Loss (25 Pips): Place the stop just below the last swing low or a minor support level, as long as it’s within 25 pips. Keeping it below a reliable structure means it’s positioned to withstand minor pullbacks while keeping risk limited.
Risk-Reward Ratio: With an 80-pip target and a 25-pip stop, the risk-reward ratio is about 3.2:1, which is ideal for setups with moderate confidence.
4. Momentum Indicators
Oscillators (RSI, MACD): An RSI reading around 40–50 in an uptrend (4-hour or daily) can suggest bullish continuation, while a bullish MACD crossover could further validate this.
Moving Averages: Price trading above key moving averages (e.g., 20 and 50 EMA) confirms trend strength and reduces the likelihood of a reversal in the trade.
Higher Time Frames: Confirm a broader bullish trend or at least an uptrend in the larger time frames (e.g., daily or 4-hour). If EUR/CAD has been making higher highs and higher lows, this confirms that the pair has bullish momentum.
Shorter Time Frames: A bullish reversal or continuation pattern on the 1-hour or 4-hour chart can provide the signal entry.
2. Support/Resistance Levels
Entry Point: Look for a clear support level where the price has reacted several times. This level may align with Fibonacci retracement levels (like 50% or 61.8%) from a recent up-move, reinforcing its reliability.
Resistance Target (80 Pips Up): If you see a nearby resistance level approximately 80 pips away from the entry, it offers a natural target zone. This could be a previous high or a strong Fibonacci extension level.
3. Risk Management
Stop Loss (25 Pips): Place the stop just below the last swing low or a minor support level, as long as it’s within 25 pips. Keeping it below a reliable structure means it’s positioned to withstand minor pullbacks while keeping risk limited.
Risk-Reward Ratio: With an 80-pip target and a 25-pip stop, the risk-reward ratio is about 3.2:1, which is ideal for setups with moderate confidence.
4. Momentum Indicators
Oscillators (RSI, MACD): An RSI reading around 40–50 in an uptrend (4-hour or daily) can suggest bullish continuation, while a bullish MACD crossover could further validate this.
Moving Averages: Price trading above key moving averages (e.g., 20 and 50 EMA) confirms trend strength and reduces the likelihood of a reversal in the trade.
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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.