CadJpy Range Break Hybrid SetupDrawing channels and resistance levels on CadJpy shows a very interesting setup.
CadJpy has been trading inside this channel since february and so far every wave that tried to break the upper range was followed by a strong bearish wave that kept the decending channel intact.
Stoch Rsi shows that theres enough fire power left for a possible upwards break. However when looking back we see that at this area the Stoch Rsi all of sudden made a bearish cross-over numerous times. The Adx indicator also still shows that a bearish trend is a bit stronger then Bullish
How To Trade
Wait patiently till either a break of the upper channel or the small lower channel.
A break of the small lower channel will lead to a wave down towards that big lower channel.
This sell can have a take profit set at around 79.55
A break of the upper channel which has been failed to break since february will be the start of a strong bullish wave, possible take profits are 84,78 and 87.36 long term.
Stop-loss: When buy set a stop-loss 20 pips below the small lower channel. When sellling set a stop-loss 20 pips above the upper channel.
