USDCAD Trade Analysis

System C's GBPJPY trade reason



Gold arrow: Entry price

Red arrow: Stop loss price

Green arrow: Take profit price

Trade Setup:

USDCAD formed a channel in the hour 1 timeframe.

Trade confirmation:

Price broke our channel.


Trade reasons:
1) price touch bottom of the channel

2) Superb risk-reward ratio



Take profit reasons:

1) Trend is suppose to rise from the bottom of the channel towards the top.

2) We have set our take profits level to the half of that due to the post US election market uncertainly.

Stop loss reasons:

1) Stop loss level was set to be below the key support level.

2) If price break beyond the support we have to get out the trade.

3) We cannot risk not getting out of the trade because price might to the new low which will place us in a unfavorable situation.