A possible high value area in between level (A) and (B) for USDCAD to short.
Sell setup 1 @ 1.28519 or nearest level with tight stoploss since the candles nearest to that area are seems like tightening its bodies and more likely to test to sell setup 1 level.
And we have sell setup 2 if sell setup 1 will fail with stoploss above 1.2923 level.
The target levels that the price may react are the support 1 & 2.
Please see comment below for more blow up detail on Setup 1 and Setup 2 in lower timeframe.
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Side note on my risk management;
I have 3% risk of my total account value with pre-determined volume. If I will take this trade setups with same volume, one trade would be tight stoploss and the other one would be the balance of 3% or lower in dollar value and all must be at a high value area of probability.
Caveat.
Sell setup 1 @ 1.28519 or nearest level with tight stoploss since the candles nearest to that area are seems like tightening its bodies and more likely to test to sell setup 1 level.
And we have sell setup 2 if sell setup 1 will fail with stoploss above 1.2923 level.
The target levels that the price may react are the support 1 & 2.
Please see comment below for more blow up detail on Setup 1 and Setup 2 in lower timeframe.
--------------------------------
Side note on my risk management;
I have 3% risk of my total account value with pre-determined volume. If I will take this trade setups with same volume, one trade would be tight stoploss and the other one would be the balance of 3% or lower in dollar value and all must be at a high value area of probability.
Caveat.
Comment:
The body of encircled candles area obviously tightened and likely the bulls are weakening.
