USD/CAD Stop

Finally our stop was hit and... I not have problem for that, because I planning that and things like that can be happened many times. Anyway, I wan to justify my criteria about taken this trade, so. I draw Fibonacci retracement in this Chart.

The most important aspect to observe is the price action at 61.8% level. The price action reacts at this level. This is the first point to watch for AB=CD Pattern. 61.8% can be a good entry also, you can see congestion area at the left of the chart around 6th... is a great reference to expect the price stop at that level.

In this Chart you can see Fibonacci level are really simple 1.618 is a harmonic number (that´s why I enter short). so, try to study these numbers. Our goal is identify these numbers and look for probable opportunities to enter a position. These numbers provide us a great probability and low risk.

Minutes after, our stop order was hit. We face a new oportunity to enter short.

This trade is a faster one, but I not take it. the criteria is simple. Look the 78.6% Fibonacci retracement and the great Supply zone. The plan is simple: enter into the yellow zone and put your stop above the last higher high.


Have a great weekend.