Potential Trend Continuation Pattern
Updated
Note: Hey guys, and welcome back for some more chart analysis practice. As you know, I am not taking this trade in real life, and I have not back-tested this particular strategy on the CADCHF , so I really don't know how this type of trading strategy will work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation, I am actually early for once, and am waiting to see if the market retraces enough to allow me to hypothetically get involved in this trade. There are two places that you could potentially draw your Fib retracement tool that I wanted to talk about. So first and foremost, you could do what I did and draw you Fib retracement tool from the most recent highs to 0.75040, which for me is the most significant recent lowest low that I would want to draw to. Also just to point out, yes, 0.74359 is even more significant of a lower low than 0.75040, but, I feel as though that is simply too low to draw a Fib retracement to. That is my personal opinion of course, and I could be absolutely wrong, but no one has a crystal ball so we will just have to see how it all plays out. Now, the second place you could potentially draw your Fib retracement tool to, would be the lows of 0.75373. This is where I originally drew my Fib retracement tool to, but decided against it, simply because I personally felt it wasn't a big enough of a retracement compared to the other options I had available to me. But, as I have stated above, no one has a crystal ball, and I very well may be wrong with this analysis, so take that for what its worth.
Now, if the market retraces enough into the 0.618 Fib level, I would enter at the Fib level (based off the lows I chose to draw my Fib tool to) @ 0.75452, and I would place my target @ 0.76120, and my stop loss at 10 pips below the most recent/significant lowest lows @ 0.74944. So guys, we'll just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation, I am actually early for once, and am waiting to see if the market retraces enough to allow me to hypothetically get involved in this trade. There are two places that you could potentially draw your Fib retracement tool that I wanted to talk about. So first and foremost, you could do what I did and draw you Fib retracement tool from the most recent highs to 0.75040, which for me is the most significant recent lowest low that I would want to draw to. Also just to point out, yes, 0.74359 is even more significant of a lower low than 0.75040, but, I feel as though that is simply too low to draw a Fib retracement to. That is my personal opinion of course, and I could be absolutely wrong, but no one has a crystal ball so we will just have to see how it all plays out. Now, the second place you could potentially draw your Fib retracement tool to, would be the lows of 0.75373. This is where I originally drew my Fib retracement tool to, but decided against it, simply because I personally felt it wasn't a big enough of a retracement compared to the other options I had available to me. But, as I have stated above, no one has a crystal ball, and I very well may be wrong with this analysis, so take that for what its worth.
Now, if the market retraces enough into the 0.618 Fib level, I would enter at the Fib level (based off the lows I chose to draw my Fib tool to) @ 0.75452, and I would place my target @ 0.76120, and my stop loss at 10 pips below the most recent/significant lowest lows @ 0.74944. So guys, we'll just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Trade closed: stop reached
Hey guys, I just wanted to give ya'll an update on this analysis I did. So the market came down and bounced off the 0.618 Fib Retracement level (also my entry point) a number of times. But eventually broke below, stopping me out. Looking at price action now, I do feel as though the market may continue lower turning, to try and retest the previous lower lows @ 0.73531. So if the market rallies and retraces, we may have another opportunity here to practice more chart analysis. Hope you guys enjoyed this one!
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