Here we have a pattern on NZD/CAD-0.28% visible on the 4 hour chart.
Conditions for a valid are:
- AB can retrace up to 78.6% of the XA leg
- BC can retrace between 38.2% – 88.6% of AB
- CD can be an extension of 1.618% – 2.618% of AB
- CD can also be an extension of up to 1.272% – 1.618% of XA leg
Take profit is set at 0.382 and 0.618 retracements of AD. At target 1, half position will be closed and the stop loss moved to breakeven.