USD/CAD: Ending diagonal + divergence, high R/R opportunity
Situation posted by anilmangal and probably others but this is one for my own trading diary.
Possible ending diagonal forming, last wave might come to an end in 1 or 2 days depending on actual PA.
Good bearish divergence on all popular oscillators too!
Sell limit orders set as in the chart, tight SL trailed to BE if TP1 gets hit.
I will change my orders if PA stalls for some days before continuing up (entry higher + SL above the 127.2 ext. of move from 2 to 3!
Might add shorts after confirmation of broken trendlines if it goes as expected.
I do believe the higher timeframe direction could still be up (possible bat forming on the monthly charts, see linked idea), but this could be a good short-term opportunity anyway and risk is small as opposed to a very nice possible reward!
Possible ending diagonal forming, last wave might come to an end in 1 or 2 days depending on actual PA.
Good bearish divergence on all popular oscillators too!
Sell limit orders set as in the chart, tight SL trailed to BE if TP1 gets hit.
I will change my orders if PA stalls for some days before continuing up (entry higher + SL above the 127.2 ext. of move from 2 to 3!
Might add shorts after confirmation of broken trendlines if it goes as expected.
I do believe the higher timeframe direction could still be up (possible bat forming on the monthly charts, see linked idea), but this could be a good short-term opportunity anyway and risk is small as opposed to a very nice possible reward!
