Nobody should be confused about why I took the trade in USDCAD. I explained it thoroughly yesterday and in many other instances. Please have a read.
The summary is we traded a great Weekly candle setup and not a 5 minute or 1 hour chart setup. This is a swing trade so we hold our trade until it works. We’ve used a wider SL because 40% of the time a dump is possible and we kept enough room for that reason. We took 1% risk so this means it’s $10 for each $1,000 balance of your account. It doesn’t matter if stop loss is 10 pips wide or 5,000 pips wide. Your maximum loss will be the same $10. Our goal is to make $20 when risking $10 and we win a minimum of 7 times out of every 10 trades. The only reason you should panic is if you broke the risk recommendation which you must respect. I mentioned why we traded early inside of the trade description of TRADE ID: June_00016.
The USDCAD Weekly bias is still bullish and still has the possibility of going up. In the Daily chart we had a spinning top candle which is an early reversal candlestick. In the H4 chart price is going up from the projected box. USDCAD will be volatile during the NFP data release. I will update you on the trade before the news event upon price action. Having the price above the 1.3620 area with a solid H4 closing will give us an advantage for a bullish run.
The only negative in the charts is coming from the H1 chart. It’s forming an early falling wedge. It’s still forming and the quality is not great but it could play out if breaks down before NFP. I want to keep our trade open as all the higher time frames suggest we should.