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
Canadian CPI and retail sales are scheduled for release later today and I'm looking for crappy numbers. Crappy numbers would mean a crappy day for the loonie so I look to buy this pair.
The pair is trading near the bottom trendline of its ascending channel. Will this support hold?
There is hidden bullish divergence present where price has created a higher low while the oscillator has created a lower low. Price also has seemed to have found nice support on its purple 200 SMA.
I believe Canada will have a crappy economic data day today. Add on the fact that it looks like Hurricane Dean will miss the oil rigs in the Gulf of Mexico, it doesn't bode well for the loonie dollar.
I look for price to weaken slightly prior to news release and will buy at 1.0550. My stop loss (SL) will be 1.0480. My profit target (PT) will be 1.0700, the .500 Fib retracement level. I will move my stop to breakeven if price climbs to 1.0620.
Buy USD/CAD @ 1.0550 | SL: 1.0480 | PT: 1.0700
