USDCAD SHORT DOUBLE TOP REVERSAL

26 mar 2020

Shorting the USD/CAD after a steep uptrend. The market has created a double top pattern of which a 4h candle has closed below its support line. In addition, the 8 EMA has crossed below the 21 and 50 EMAs suggesting trend reversal. the 8, 21 and 50 EMAs are all starting to point down looking to 'fan out' and trend down. Entry triggered as soon as candle closed and targeting around maximum 400 pips. More likely to take profit at about 80% of this. Stop loss placed halfway up the pattern allowing some room for movement. This should give a 2:1 risk reward