Risk to Reward

I have been so busy this week that I have not been able to trade my personal account much. But here is an update of where I am at as we approach the middle of the month.

If you notice my batting average has suffered severely because I have not been able to pay as much attention to my positions. But because I maintained a solid risk to reward on each position I have still been able to see consistent results. Stay Tuned!

GBP/CAD Trade Update

We have officially hit TP1 on our long GBP/CAD position. Our next target is at the 200MA on the daily chart Stay Tuned!

Canada O Canada

Today’s trade pick for the day is USD/CAD. This pair just came off of some really bullish trading last week and has shown a lot of strength from the bulls this month as a whole. Price on this pair has just broken through major resistance  on the weekly at 1.0050 after bouncing off of parity for a few months.

Trading in the direction of least resistance we are looking to add to our position by going long above the daily pivot at 1.0261 buy placing our entry at 1.0269. We are looking to place our stop loss just below the low of the previous days candle on the daily chart, which is 53 pips from your entry. You will be risking 53 pips by placing your stop loss at the low of yesterdays candle. If the low of the bottoming tail does not provide a good enough risk to reward then you can opt to drop to a smaller time frame to find a better place for your entry and your stop loss, just make sure you are trading in the direction with the overall trend.

If the bulls fail to prove themselves and price fails to break above 1.0269 then you have saved your capital and avoided lots of heartache by waiting for confirmation for price to follow through above the daily pivot to trigger you into the market at 1.0269. Our initial target for this trade is R3 which is at 1.0363 and Take Profit level 2 (TP2) is at 1.0411, for TP3 we are trailing the 8MA allowing the chart to take us out of the trade. Keep in mind to watch out for R1 on this trade at 1.02985 which could present a problem for our long position, so watch price to see how it reacts to R1. For those of you who are less aggressive and do not mind the risk to reward you can opt to place your entry above R1 at 1.02990 and wait for price action to prove it is ready to break through the resistance level at R1.