The end of the last week set up very nicely for a market open limit order to enter short on the USD/CAD D1 chart. Some less experienced traders may find this type of trade tricky to enter, but with a good broker, you can enter within seconds of the market open.
On Friday, USD/CAD D1 set up with a very nice inverted hammer (pin bar) at the close. A potential short position was also supported by the confluence of both horizontal resistance and a 50% fib retrace level. Recognizing this, I made a note both on my desk pad & in my smart phone using an alert to notify me 2 hours before the market open. The position was scaled in size to match the percentage of my account I feel comfortable risking. I also set both the 38 pip stop loss and 76 pip profit target at the time of entry.
This was an easy trade to sit through as it quickly went into profit, although I have to admit I didn’t look at it again until the open on Tuesday. I checked it again later that evening and it was cranking away.
These are the kinds of setups I like the most. Confluence, trend and trade signal all come together. I would have considered this a ‘winner’ even if it hadn’t gone to target. It was executed exactly to plan. When I can make 3% of my account balance on a single trade, well…that’s a good week. But to do it twice in the week is even sweeter. Become a Forex Market Master member and see how the second profitable trade was made.