I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Buy USD/CAD
This pair has been showing bullish divergence for a couple days now. Price has been steadily dropping creating lower lows, while the oscillator has been making higher lows. This recent fall in price has been due to a combination of strong economic data and increased expectations of future rate hikes coming out from Canda while the US comes out with economic data that sucks.
I believe a bullish retracement will occur soon. Tomorrow, is the Bank of Cananda's interest rate decision. While the consensus is that the BoC will hold, there is speculation they might hike. Their statement will be scrutinized for any hints on future interest rate decisions. I think they will be leave rates unchanged, and be somewhat cautious in their statement. I'm looking for traders to sell off on this event.
Price is trading near the major psychological support of 1.12 and this is where I look to enter long. I'm going to buy at 1.1200. My stop loss (SL) will be 1.1150. My profit target (PT) will be 1.1300.
Buy USD/CAD @ 1.1200 | SL: 1.1150 | PT: 1.1300
