In this post I want to make a “dissection” of our plan on the USD/CAD, which was posted on the blog on 17.02.2017. The idea here is to show you how we plan our trades, how we executed them, what is our strategy, where we place our SLs and of course how we manage our trades and risk. I hope you find it informative and interesting and if you have any questions you can contact us via mail or post a comment below this post.
This is our initial plan on the USD/CAD pair which was posted here on the blog on the 17th of February.
USD/CAD – Review – 27.02.2017:
This graph shows the movement of the USD/CAD in the weeks after our plan was made. As you can see the pair entered in to our Buy zone after breaking the trend channel and went up exactly to our resistance level (blue line), which was our end point.
So now up to the dissection part of this thread. First of all I want to say that every H4 trend, be it uptrend or downtrend, has a few different trends in it on the M30 time frame. And the same goes for the M30 and M5 time frames. Our goal is to go lower between time frames in order to find good spots to enter in to a Buy positions, since we are in the Buy zone, of this H4 uptrend. On the next graph you can see the different M30 trends, which are part of the overall H4 uptrend.
As you can see from the graph the H4 uptrend from the break of the trend channel to our resistance level (blue line) is composed of 5 uptrends, 3 downtrends and 1 range on the M30 time frame. Now this is a good opportunity to look for spots to enter in to a Buy position following the H4 uptrend.
Here is the first M30 time frame graph showing where we could have bought the pair and where we would have locked in some profits. The rest 40% which are left to float of each trade are meant to be closed on the H4 time frame. Also after some movements up it is okey to move your SLs up at Breakeven level just in case the uptrend on H4 finishes before our full plan is executed. That way you will have some profits locked in and no losses on your trades.
Now since we are not all the way up to the resistance level (blue level) on H4 our analysis show the pair will reach we have a few more opportunities to open Buy trades and add up some profits to your bankroll. Here is the 2nd graph (2nd part) of our trades. As we can see after some ups and downs on the M30 time frame, the pair entered in to a range trend.At first we could not know that it is a range, but after a few bounces of the same support and resistance levels we can safely assume that it is indeed a range trend. Here the strategy is a little riskier, but the idea is to Buy the bottoms since we are in our Buy zone, but also you should keep in mind that we are getting close to our stop level (blue line), so the idea here is to open positions with less investment – between 0.4 and 0.6 of your initial investment. As you can see from the chart one of our trades worked out in the range and we managed to lock in some profits when the price reached the top of the range, and the second trade did not work out and our SL was hit. Followed by this range and after breaking out of it the pair made a square formation which was broken with a strong bullish candle. This would have been the spot for our Entry 6. After that the pair moved up, reached our stop level, formed a square and broke both the square and our previous top with a strong bearish candle. At the end of it, it was our time to close everything we had open on the market. Our plan was fulfilled and we managed to lock in some good profits out of this.
This was our trading method and execution of our plan on the USD/CAD. I wish everyone happy and profitable trading. Follow us on Twitter for live signals on the Forex market or on Facebook for more information about what we do and interesting articles and photos of our team.