Category : Technical Analysis
USDCAD setting up for a 1600 PIP move
USDCAD moved down from a high of 1.3792 in May down to a low of 1.2060 in September. Price then pulled back to the 50% Fibonacci level and now has resumed the downward movement for another possible 1600 PIP move to the 161.8 Fibonacci extensions of 1.0985. This could take another 4 to five months to unfold.
This is how the hedge fund makes money. So long-term trading gives you a high probability to make money from the markets and helps you to avoid the ups and downs in psychology and emotions that most traders face.
Besides, the broker wants you to trade a lot because they end money on your trading volume whether you win or lose. So you can follow this trade from now with a tight stop just above the 50% Fibonacci price level. This is a monthly chart. Take your trades off the daily charts if you don’t want to withstand drawdowns. But if you can risk 1% of your account and just allow this trade to run for the next few months. You will be surprised how little you have to do to make money from the markets. You just have to check your charts once a day after you place this trade. I will be checking this trade off the daily, just find possible areas to add to my position as the trade goes in my favor.