Hey guys, over the weekends, I wrote about a potential long on USDCAD at 1.3.
It did not hit my entry level and now I am looking at this bigger pattern on H4 to sell instead.
Pattern Identification
Bearish Shark Pattern completes at 1.3680.
This level is nice as it will also complete a bull trap for those trading breakouts.
Trade Execution
I will wait for a reaction around 1.3680 before I initiate a short based on the shark pattern.
A good reaction will be a hammer or a nice candlestick reversal around that zone.
When will this pattern be invalidated?
If I see a big candlestick breakout above the 1.3680 level, it will mean that this pattern has failed and we will likely see USDCAD heading much higher.
It did not hit my entry level and now I am looking at this bigger pattern on H4 to sell instead.
Pattern Identification
Bearish Shark Pattern completes at 1.3680.
This level is nice as it will also complete a bull trap for those trading breakouts.
Trade Execution
I will wait for a reaction around 1.3680 before I initiate a short based on the shark pattern.
A good reaction will be a hammer or a nice candlestick reversal around that zone.
When will this pattern be invalidated?
If I see a big candlestick breakout above the 1.3680 level, it will mean that this pattern has failed and we will likely see USDCAD heading much higher.
