We have a nice bearish butterfly forming on the CAD/JPY pair, Intermediate Timeframe is 1H, Major is 4H and Minor is 15M.
I expect this pattern to complete within the next few days.
The following are the things I like to see confirmed before taking a trade:
XA Retracement Is: 1.272
BC Projection is: 1.618
Alternate AB=CD is: 1.13
Stop loss level is measured with the fib retracement tool from X to A using a set ratio 1.414
Take profit level is measured with the fib retracement tool from A to D using a set ratios 0.382 and 0.618
If price reaches the 0.382 ratio I would move my stop loss into break even or just into a little profit to bulletproof the trade ensuring if the trade goes against me I will not take a loss and even a small profit.
If you have any questions feel free to drop it in the comments.
Happy trading and hope everyone has a great day!
Matteo :)
I expect this pattern to complete within the next few days.
The following are the things I like to see confirmed before taking a trade:
XA Retracement Is: 1.272
BC Projection is: 1.618
Alternate AB=CD is: 1.13
Stop loss level is measured with the fib retracement tool from X to A using a set ratio 1.414
Take profit level is measured with the fib retracement tool from A to D using a set ratios 0.382 and 0.618
If price reaches the 0.382 ratio I would move my stop loss into break even or just into a little profit to bulletproof the trade ensuring if the trade goes against me I will not take a loss and even a small profit.
If you have any questions feel free to drop it in the comments.
Happy trading and hope everyone has a great day!
Matteo :)