I usually do not trade short term, but this one I didn't want to miss. (My purpose is not to boast here but to share the reasons for the trade in order to give some humble advice for novice traders. I have made a couple of thousand dollars in a matter of an hour in this lucky trade. I would like to share the reasons why I have entered this position and the reasons why I have exited at that point shown on the chart.
1-Reasons to enter: This morning I advised (long term) traders to avoid USDCAD for long trades. I am still sticking on this opinion, as I don't see any definite long term trend change yet.
-There was a retrace of about 50% to the previous advancement
-There was a formation looking like an ABC, which is quite profitable generally, if correct.
-The price was lingering around the Target1 support line.(dotted red line on the chart)
-Oil started to go down sharply and USDCAD reacted to it
2- Reasons to Exit:
-The price at around 2pm ET hit a point, where a support line, a trend channel upper line and a H&S like formation Neckline met each other (can be seen as purple lines on the chart).
I had enough profit for the day and went out for a coffee. Good Trades
1-Reasons to enter: This morning I advised (long term) traders to avoid USDCAD for long trades. I am still sticking on this opinion, as I don't see any definite long term trend change yet.
-There was a retrace of about 50% to the previous advancement
-There was a formation looking like an ABC, which is quite profitable generally, if correct.
-The price was lingering around the Target1 support line.(dotted red line on the chart)
-Oil started to go down sharply and USDCAD reacted to it
2- Reasons to Exit:
-The price at around 2pm ET hit a point, where a support line, a trend channel upper line and a H&S like formation Neckline met each other (can be seen as purple lines on the chart).
I had enough profit for the day and went out for a coffee. Good Trades