USDCAD 4H Descending channel

30 mar 2020

USDCAD is creating lower highs/lows on a 4 hourly descending channel. With MACD gaining strength any pullback towards the channel top may create a hidden bearish divergence which can be treated as an area to look for weakness creating a possible short entry. as an example, using something like a bearish engulfing candlestick in this area is acceptable to trade and defines your risk as the channel top or slightly beyond.

Take profit can be set to a gap close or the recent high before the gap.

risk for all trades is 2.00% maximum

this particular trade yields a 1:6 risk reward