EURCAD was making a series of LHs and LLs aligned with the concept of DOW THEORY and the RSI graph near the current price level is also consistent with the price point trend which shows no divergence. A bearish rectangle continuation pattern is also identified near the current price level further strengthening the case for a possible trend continuation.
My entry point for this trade is 1.44900.
SL is set at 1.46211 and my TP is set at 1.43589.
To take advantage of this trend continuation, I have applied another trade but this time TP 2 is set at 1.42278 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.10 : approx USD 100 RISK),
(TRADE 2 : 0.10: approx USD 100 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.10: approx USD 100 REWARD),
(TRADE 2 : 0.10 : approx USD 200 REWARD)
}
My entry point for this trade is 1.44900.
SL is set at 1.46211 and my TP is set at 1.43589.
To take advantage of this trend continuation, I have applied another trade but this time TP 2 is set at 1.42278 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.10 : approx USD 100 RISK),
(TRADE 2 : 0.10: approx USD 100 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.10: approx USD 100 REWARD),
(TRADE 2 : 0.10 : approx USD 200 REWARD)
}