04/09/14 – 10:30 am – My Stop Loss has been taken out on this USDCAD Long trade, giving a 1% loss on my trading account balance. There was no data announcement at this time to cause this drop in price and the setup was sound. Also this drop cannot be classed as a typical Wave 4 pullback from the Wave 3 high formed just after trigger, as it has pulled back too far and has broken Elliott wave rules at the time of writing this update. I am not going to search the internet for a possible cause as that is time wasted as lots of circumstances may have caused this that could never happen together again! I am still confident of future USDCAD Long positions and will continue to keep to my strategies. Chart as Below
04/09/14 – 07:45 am- The second Blue bar has triggered the Stop Buy order for this USDCAD Long trade. Announcements this afternoon from both the USA and Canada are critical but estimations at the moment work in favour of this USDCAD Long trade. However I will keep a close eye on the trade before the announcements with the view of either taking any profits if above my minimum 1.6% or adjusting trailing stop. Chart as below for this USDCAD Long trade.
04/09/14 – 07:00 am – This potential USDCAD Long trade is setting up well on the 30 minute time frame on an XTL Breakout. I have been looking for decent USDCAD Long positions in line with my longer term forecast that can be read on the My Trading Buddy Blog HERE . The first XTL Blue bar is average in size compared to the preceding 20 bars and therefore is the start point of this trade. The entry point is calculated at 50% of the length of this first Blue bar and added to the high and the reverse is done for the Stop Loss calculation. Stop Buy order @ 1.0907 with the Stop Loss @ 1.0896 and the initial Take profit limit order @ 1.0939, giving a great 1:3 Risk to Reward ratio for this potential USDCAD Long trade. The price is on strong Bullish return after the recent Bearish pullback in the first half of this week. One extra indicator I am adding to this and future Short time frame Forex trades is the 5 (red) , 10 (green) and 50 (yellow) Day moving averages. A very basic Forex trading indicator and as in this great example of the 5 and 10 both crossing each other and then also crossing the 50 on the lead up to this potential breakout setup, which indicates a potential strong Bullish Trend is forming. I will trial this as an additional indicator to this XTL breakout strategy and measure it effectiveness in combination s I am always trying to continually develop my strategies, without harming the basic foundations. Potential USDCAD Long Setup Chart s below.