Remember the Inside Bar Price Action Setup that was talked about roughly 2 weeks ago?, this trade setup has grinded it’s way to our 300% target, which is a good target goal that we always we try and aim for. By aiming for a consistent risk/reward target of 1:3, mathematically we can lose most of our trades and still make money.
USDCAD can be a rough pair to trade, and this trade would of been a test of patience so congratuations to all those who held on for the ride here.
For those traders who demonstrated true nerves of steel and held onto this trade would now have returned 300% on their initial investment. This was a 50 pip risk for a 150 pip gain. To learn how to trade Price Action Setups like this one, check out the Price Action Protocol.
Previous Post On This Setup
Looking at the USDCAD market to kick off trading for the start of this week. The Friday’s Forex session from last week closed as an Inside day setup. This market is clearly in a moving downtrend so we are only looking for bearish trading opportunities
Price has corrected itself back to the mean value where the Price Action Protocol demonstrates is a good area to enter into trending markets environments. An inside day is a period of pause or consolidation in the market, so what we are waiting for is a breakout of that consolidation, which would be either a break of the high or low of the Inside Day.
Now because we are in a bearish environment at the moment, we are only looking to short with the momentum here, so we are only looking for those breaks of the Inside Day lows. If a bearish breakout does occur this session we could see the trend pressure continue and push price into new lows.