Let’s consider the H4 chart of USD/CAD instrument. As oil prices keep falling, we observe the US dollar strengthening against the most liquid currencies. Canadian dollar, traditionally related to commodity currencies, is not an exception. A price is moving inside an H4 upward tendency. We expect a completion of correction at 1.15544 mark. It is crossed by trend line and a lower boundary of the Donchian Channel. A channel slope has a green zone direction as well. 1.15544 mark can be used for risk mitigation after the long position opening. The fractal resistance level 1.16761 in its turn is comfortable for the pending buy order opening. If it happens then a reverse of ParabolicSAR trend indicator will become probable. At the same time a divergence of RSI-Bars oscillator is going to complete. We recommend conservative traders to wait for a breakdown of the oscillator resistance mark 52.3319%.
After position opening, Stop Loss is to be moved after the Parabolic values, near the next fractal minimum. Updating is enough to be done every day after a new Bill Williams fractal formation (5 candlesticks). Thus, we are changing the probable profit/loss ratio to the breakeven point.
- Position BUY
- Buy stop higher 1.16761
- Stop loss lower 1.15544
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