CADJPY has started a new uptrend and I was waiting for the pullback to enter LONG on this trade.
Here are the things that I am looking for to enter this trade setup:
1. Price will retrace around 38.2 to 50.0 Fibonacci levels which both coincide with previous support and resistance areas.
2. Strong green candle has closed with its low touching the 38.2 Fibonacci level and above the 10 SMA (blue line).
3. BB shows strong momentum upwards as price is contained near the upper band and RSI is also showing a move upwards.
Will enter this trade at 83.900 with initial TP of 85.900 to achieve a 1:2 RRR while setting a 100-pip stop loss, just about the size of the strong green candle.
This setup is similar to this:
Here are the things that I am looking for to enter this trade setup:
1. Price will retrace around 38.2 to 50.0 Fibonacci levels which both coincide with previous support and resistance areas.
2. Strong green candle has closed with its low touching the 38.2 Fibonacci level and above the 10 SMA (blue line).
3. BB shows strong momentum upwards as price is contained near the upper band and RSI is also showing a move upwards.
Will enter this trade at 83.900 with initial TP of 85.900 to achieve a 1:2 RRR while setting a 100-pip stop loss, just about the size of the strong green candle.
This setup is similar to this:
