GBP/CAD: Double top to get an ideal entry for a short...?
Related idea by FullTimeTrader linked below.
The 50% retracement level could give us an ideal entry with limited risk to get short on this pair around the 2.0500 level. Good divergence on stochastics and MACD histogram on the 4H chart.
I'm placing my sell limit at 2.0478 cuz I don't think we will get to the high of earlier today again. If we get well above 2.05 again we might see a continued move up. SL is close to the high of earlier today.
If the double top fails at it's baseline then we might also see new highs (red arrow 30M chart) so my first entry has a quick TP at the bottom of the double top pattern, on the remaining positions SL will at that time be trailed to BE.
Second target around previous structure, third target can be adjusted as the trade develops to go until the trendline or completion of a possible advanced harmonic pattern. From there-on it's wait and see if we break the trendline or possible completion of the harmonic pattern for me.
Good luck.
The 50% retracement level could give us an ideal entry with limited risk to get short on this pair around the 2.0500 level. Good divergence on stochastics and MACD histogram on the 4H chart.
I'm placing my sell limit at 2.0478 cuz I don't think we will get to the high of earlier today again. If we get well above 2.05 again we might see a continued move up. SL is close to the high of earlier today.
If the double top fails at it's baseline then we might also see new highs (red arrow 30M chart) so my first entry has a quick TP at the bottom of the double top pattern, on the remaining positions SL will at that time be trailed to BE.
Second target around previous structure, third target can be adjusted as the trade develops to go until the trendline or completion of a possible advanced harmonic pattern. From there-on it's wait and see if we break the trendline or possible completion of the harmonic pattern for me.
Good luck.
