CADJPY had a very bullish day yesterday. The daily candle barely has any upper shadow. Today’s first two H4 candles came out as bearish candles. However, a very significant level has been held. The price had a rejection at the level earlier. The level got breached. If the level produces an H4 bullish engulfing candle, buying the pair may get us some green pips with a good risk and reward ratio. Let us have a look at the H4 CADJPY chart.
This trade idea was generated by our powerful Elite Swing Trader System.
Free Forex Trade Signals CADJPY – 16th Oct 2019
The level of 82.165 got breached yesterday by a very commanding H4 bullish candle. The chart shows that the price after producing a Doji candle headed towards the broken level. The last H4 candle closed within the breakout level. If the next candle comes out as a bullish engulfing candle closing above the level of 82.320, the price may head towards the level of 82.920 with a good buying pressure. Let us have a look at the summary of the trade
- Buy Stop Order: 82.510
- Stop Loss: 82.167
- Take Profit: 82.969
On an ABC pattern trading, the percentage of retracement is very important. 38.2% retracement is considered the best retracement. However, other levels such as 61.8 and 78.2 are considered a good level for a retracement as well. What most important is the signal candle’s attribute. A strong reversal candle at those levels is the most important factor to take entry as far as ABC trading pattern is concerned.
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