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Wedge Short Trade | USD\CAD

Like predicted in previous analysis, price stopped on 1.1600 resistance, creating a beautiful Evening Star which is a very strong candlestick reversal pattern. This triggered a Short entry with stop loss right above the Dojis that formed the Evening Star. Risk:Reward ratio is also very profitable, and much above 1:2.

Explained Trade: Double Top in EUR\USD


Aggressive trade of a Double Top, one of the most unique approaches to trading the Double Top pattern.
After the first top was identified, a second top began to form right at Resistance at 1.3400. Waited for candlestick formation to signal short entry.

A Bearish Harami signaled short trade - bearish candle that is entirely in the range of its previous bullish candle.
Entry was 1 pip below the Low of the Bearish candle. Stop Loss was placed 1 pip above the high of the Bearish candle - 28 pips.

USD\CAD - Wedge Update

As you can see the Head And Shoulders didn't form - instead, price bounced from the support trend line of the Wedge. Price is now struggling with the Resistance area of 1.1600.

Possible Head & Shoulders in USD\CAD

After breakout of the Wedge at 4-hour chart a downward move is expected. As the wedge was a precise retracement to 38.2% of last uptrend, price is expected to reach the last low in several weeks to months.

The price action previous the breakout can be seen as a Head & Shoulders pattern. This is an highly reliable pattern that after breakout has 95% of reaching its projected target. The target is right on the 23.6% retracement of the last uptrend.

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